Building Snippetz la... • 5m
So how do you calculate your company’s valuation? Here’s 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 → Year 2: $120K → 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 3–5 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 company’s 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 × 5 = $500K valuation.
Semi qualified CMA (... • 3m
Hey founder👋 why ₹1 today is more valuable than ₹1 tomorrow? Let me break down the concept of Present Value (PV)—it’s simpler than you think! It’s the value of future money today, adjusted for risk and opportunity cost using a "discount rate." It
See MoreBuilding Snippetz la... • 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 company’s current or projected revenue
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The Institute of Chartered Accountants of India • 2m
Ever wondered what your business is really worth? 🤔 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. ❓️What Company Valuation Is (an
See MoreSemi qualified CMA (... • 3m
Hey founder👋 Ever wondered how much your money can grow over time? Let me break down the concept of Future Value (FV) What’s FV? It’s the value of money at a future date, considering interest or growth over time. Think of it as how ₹1 today can turn
See MoreSemi qualified CMA (... • 3m
Hey founder👋 Do you know about Berkus Approach? The Berkus Approach is a startup valuation method based on qualitative factors, assigning monetary value to key success components. It’s ideal for early-stage startups without extensive financial histo
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The Institute of Chartered Accountants of India • 1m
How to Calculate Product Cost, Set Profit & Selling Price - Using a Cost Sheet 🤔 Ever wondered how businesses actually price their products? It all starts with one simple but powerful tool: the Cost Sheet. 🚀🔥 Here’s how it helps: 1️⃣ Calculate
See MoreHey I am on Medial • 7m
Only two things sustain a stock price 1. Future Earnings/Cash flow Power(going concern): This tells a company's ability to generate sustainable profits or free cash flow. Whether you're analysing a high-growth tech company or a high dividend-paying
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