Building Snippetz la...ย โขย 5m
So how do you calculate your companyโs valuation? Hereโs the simplest way to think about it: 1. Forecast Future Earnings: Start with what your business makes now and apply a growth rate. Example: Year 1: $100K โ Year 2: $120K โ Year 3: $144K. 2. Adjust for Time (Discounting): Money now is worth more than money later. Use a discount rate (e.g., 10%) to calculate what those future earnings are worth today. 3. Add Long-Term Value (Terminal Value): Estimate how much your business will be worth after 3โ5 years. Example: Coffee shop: Discounted future profits = $330K. Terminal value = $500K. Total Valuation = $330K + $500K = $830K. Simple: future cash + long-term or you can go like this 1. Find a Key Metric: Use your companyโs profit, revenue, or EBITDA (earnings before interest, taxes, etc.). Example: Your profit is $100K. 2. Apply an Industry Multiple: Look at what similar companies are selling for (e.g., 5x profit). Example: $100K ร 5 = $500K valuation.
Building Snippetz la...ย โขย 5m
I recently posted how do you calculate violation, many people were saying most startup doesn't earn profit , so there are two more ways you can go about Revenue Multiples Method 1. Focus on Revenue: Use your companyโs current or projected revenue
See Moreย โขย
The Institute of Chartered Accountants of Indiaย โขย 2m
Ever wondered what your business is really worth? ๐ค Many business owners grapple with this question, unsure if valuation hinges on the balance sheet or profit, or even how to value a company with no sales or profit. โ๏ธWhat Company Valuation Is (an
See MoreSemi qualified CMA (...ย โขย 3m
Hey founder๐ why โน1 today is more valuable than โน1 tomorrow? Let me break down the concept of Present Value (PV)โitโs simpler than you think! Itโs the value of future money today, adjusted for risk and opportunity cost using a "discount rate." It
See Moreย โขย
The Institute of Chartered Accountants of Indiaย โขย 1m
How to Calculate Product Cost, Set Profit & Selling Price - Using a Cost Sheet ๐ค Ever wondered how businesses actually price their products? It all starts with one simple but powerful tool: the Cost Sheet. ๐๐ฅ Hereโs how it helps: 1๏ธโฃ Calculate
See MoreWork on your ideasย โขย 1y
Meet farza the founder of buildspace the largest place to find ppl building cool stuff he started his entrepreneurial journey at the age of 13 selling blank dvds and reaching 100k in profit by 15 now he runs a builders community called buildspace his
See Moreย โขย
Business Management Dailyย โขย 1m
How much profit can a real estate agent make? This completely depends on the number and price of the deals. Example: If an agent sells 3 properties a month with an average price of โน40 lakh and the commission is 2%, then Monthly Earnings: โน40,00
See MoreFounder - Burn Inves...ย โขย 8m
Ola Electric investors, how are you all? As soon as the lock-in period ended, the companyโs share price dropped. To justify a valuation of โน39,000 crore, at least โน3,000 crore in revenue and a profit of โน50 crore or โน100 crore will be needed. Then, m
See MoreDownload the medial app to read full posts, comements and news.