article thumbnail

How to Value a Small Business

Equilest

Earnings-Based Valuation Earnings-based valuation methods, such as the discounted cash flow (DCF) or earnings multiplier approach, focus on the business's ability to generate profits in the future. These methods assess the present value of expected future cash flows or earnings to determine the business's worth.

article thumbnail

How to Value a Glass and Glazing Company

Equilest

Valuation Methods H1: The Earnings Multiplier Method The Earnings Multiplier Method, also known as the Price-to-Earnings (P/E) ratio, is a popular choice for valuing Glass and Glazing Companies. It involves estimating the company's future cash flows and discounting them back to their present value.

article thumbnail

Valuation Purposes: Investor/Partner Buyout or Buy-in

Equilest

Discounted Cash Flow (DCF) Analysis: Estimating the present value of the company's future cash flows, taking into account factors such as risk, growth rates, and discount rates. Asset-Based Valuation: Evaluating the company's assets, liabilities, and intangible assets to derive a fair market value based on their net worth.