About Company Valuation
Company valuation is a process and a globally recognized valuation method used to determine what a business is worth. The value of a business depends on two things: the capability of a business to generate profits and the risks associated with such profits. Company valuation results depend on your business assumptions, ability to visualize your future and calculate the risk associated with the growth of your business.
Business value is really an expected price the company would sell for, or shares may be sold to an investor. The real shares price may vary quite a bit depending on who determines the business value.
Why valuation of a Company is required?
- Business is in the Startup Phase.
- CEO need to Provide Quarterly or Annual Updates.
- You are planning to raise Fund from venture capitalist firm.
- Planning to Sell a Business.
Business valuation method for early stage startups
- Comparable Transactions.
- Discounted Cash Flow.
- Exit Strategy and Investment Stage.
- Potential and Talent.
- Asset Valuation.
- First Chicago Method.