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The Complete Business Valuation Formula Guide: 10 Essential Methods

Equilest

Equity Multiplier Business Valuation Formula The equity multiplier is found using: Equity Multiplier = Current Value / EBITDA For instance, if a business has a current value of $1,000,000 and an EBITDA of $200,000, the equity multiplier would be: $1,000,000 / $200,000 = 5.

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Transcending Value – Liquidation, Monetary, Financial, and Strategic Value

Value Scope

Environmental, social, and governance (ESG) value is relatively new, and gaining acceptance in corporate America. The monetary value is just what it says, pure cash value without regard to any psychic benefits. To the typical private equity group (“PEG”), financial value rules – buy low and sell high.

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Transcending Value – Liquidation, Monetary, Financial, and Strategic Value

Value Scope

Environmental, social, and governance (ESG) value is relatively new, and gaining acceptance in corporate America. The monetary value is just what it says, pure cash value without regard to any psychic benefits. To the typical private equity group (“PEG”), financial value rules – buy low and sell high.

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Transcending Value – Liquidation, Monetary, Financial, and Strategic Value

Value Scope

This is the second in a series of blogs that attempts to explain and distinguish between various valuation concepts, such as price, fair market value, fair value, liquidation value, intrinsic value, financial value versus strategic value, monetary versus economic value, emotional and psychic value, among others.

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How Corporate Insiders Perceive CEO Inside Debt

Reynolds Holding

The rationale for offering such equity-type compensation to top executives is to align the interests of managers and shareholders to mitigate agency conflicts between them. Otherwise, managers might deviate from optimal corporate strategies that maximize shareholder value.

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Top Methods CPAs Use to Determine a Business’ Value

Shuster & Co.

In this instance, the formula accounts for the business’ total equity by calculating asset value minus total liabilities. The liquidation value method assumes that the business will cease operations and liquidate any assets. The value is based on the net cash that would be generated from the sale of assets.

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Transcending Value – Intrinsic and Fair Value

Value Scope

This is the first in a series of blogs that attempts to explain and distinguish between various valuation concepts, such as price, fair market value, fair value, liquidation value, intrinsic value, financial value versus strategic value, monetary versus economic value, emotional and psychic value, among others.