Adviser calculators and tools

Business Valuation Calculator

Business Valuation calculator

This is a simple and effective tool to help you estimate the potential value of your client's business for shareholder protection purposes.

The results are based on the information you have provided and should only be used as a guide. Your information is only used to work out these results, therefore LV= will not store or retain any data once you exit the tool.

Details

The profit multiplier for valuation (also called the price earnings ratio) is used to estimate the current value of future earnings. The multiple depends on market conditions, expected growth rates and the industry that the company operates in.

For convenience and simplicity, a predefined set of multiples have been provided based on growth expectations. Use the slider bar as a guide and select the most appropriate multiple for the business (between 1 and 6). And remember the higher the multiple, the higher the valuation.

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Subtotal
This is the value of the assets the business owns, less the liabilities as per the most recent and accurate company balance sheet.

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Potential value of business