Company evaluation
Do you want to find out at what price your company can be sold on the market? Are you thinking about your estate or succession planning? We would be happy to determine the current market value of your company for you. Professional competence, decades of experience, and profound market knowledge guarantee you the highest precision.
DISCOUNTED CASHFLOW-METHODE – BEST PRACTICE (ENTITY APPROACH)
Our methodology: The discounted cash flow (DCF) method calculates a company’s value based on future cash flows. These are ignored to the valuation date after deriving or forecasting the future free cash flows using a tax-adjusted weighted average cost of capital (WACC). How is free cash flow calculated? The cash flow from the company's activities is freely available to investors (lenders, shareholders) after their investments - both in net current operating assets and non-current assets. This capital makes it possible to pay off creditors' debts or dividends to shareholders.
​Starting from the valuation date, we prepare a budgeted income statement for the next five years. For the subsequent periods, a so-called residual value is calculated for simplification purposes, which is to be compared with the adjusted sustainable profit (according to the simple capitalized earnings value method). The difficulty in determining the planning horizon is the weighting of the residual value. The longer the planning horizon, the more difficult it is to forecast the development of future free cash flows - the share of Residual value in the enterprise value, on the other hand, would be smaller.
SAMPLE COMPANY VALUATION FILE
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Describe your image
Describe your image
