The Detailed Business Analysis is available with the M&A Subscription Plan.

How to Build a Valuation Range

  1. Setup individual valuation models and save defaults
    1. Once you save the defaults for the valuation models, the value range will appear on the Valuation Summary page.
  2. Set the weightings for each valuation method:
    1. Each weight can vary between 0 - 100%
    2. The weightings should total 100%
    3. The weightings should reflect which method is most important for the business value
  3. Set the weightings for each valuation method:
    1. Each weight can vary between 0 - 100%
    2. The weightings should total 100%
    3. The weightings should reflect which method is most important for the business value
  4. The overall Valuation Range will adjust as you adjust the method weightings

FOUR VALUATION MODELS

Market Multiple Model
Market Multiples Valuation

  • Click the Statement Drop down arrow and choose first which financial data you want to use
  • Click the Base drop down arrow and choose the valuation base such as EBITDA, Net Income, or Revenues
  • Click the Valuation Type drop down arrow and choose what you want to look at between Asset Value - this are assets including liability or debt and Equity Value - if you want to look at the stock value.
  • Multiples Range - Select  the range you want from the slider control.

Balance Sheet Valuation

Balance Sheet Valuation

  • Click the Statement Drop down arrow and choose first which financial data you want to use.
  • Click the Valuation Type:  choose between Asset Value or Equity Value
  • Adjust the Market Adjustment for each line item.
  • Valuation Midpoint which will change as you change the percentage of Market Adjustment

Perpetual Growth DCF

This is the Theoretical Value based on the Dividend Discount Model Business Valuation with the key assumption that the business owner receives all the cash flows of the business.

Perpetual Growth DCF

  • Click the Statement Drop down arrow and choose first which financial data you want to use.
  • Click the Valuation Type:  Asset Value or Equity Value
  • Cash Flow will be displayed based on the chosen Statement.
  • Cash Flow Long Term Growth Rate: Theoretically the growth rate forever.
  • Weighted Average Cost of Capital (WACC) can be adjusted by selecting the range from the Slider control.

Projected DCF 

Provamark provides a traditional Discounted Cash Flow Model with Terminal Value

Projected DCF

  • Select Projection Scenario: Valuation will use cash flows from the selected scenario
  • Select the Base: The terminal value will use this value base.
  • Select the Weighted Average Cost of Capital (WACC): Cash flows are discounted by this rate.
  • Select Terminal Multiple Range:  These apply to the Base to calculate the terminal value of the business.

Weighted Average Cost of Capital (WACC)

WACC is used to discount future cash flow in some of the models.  Provamark provides an easy to use tool to calculate WACC for your business.

Weighted Average Cost of Capital