article thumbnail

Franchise Value: Post-COVID

GCF Value

In basic terms, you value a company with two variables, (1) cash flow to the owner (dividends to the investor), and (2) a required rate of return based on the risk of that investment. 2020 = 2.94 (64 comps). 2021 = 3.01 (8 comps). Our response is not so simple, but let me try to explain: Steve Mize, ASA.

Comps 52
article thumbnail

X Factors In the Business Valuation Formula

GCF Value

The exercise is similar to when the real estate agent pulls comps to help you price your house – you have a data point based on transactions for broadly similar entities. The end product from an online valuation calculator won’t provide much in the way of analysis.