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How to value SMEs: A Simplified Roadmap

Valutico

Discounted Cash Flow (DCF) Method: DCF, a method that calculates the present value of future cash flows, can be challenging to apply to SMEs due to data reliability and future projection issues. SMEs, with their unique structures, present specific challenges that can significantly influence their value.

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How to Value an SME—An Introductory Guide

Valutico

SMEs can present challenges with DCF due to limited historical financial data, unreliable information, inadequate financial forecasts, and difficulty in determining terminal value. Approximations, negotiations, and considering illiquidity premiums help mitigate these challenges. Why Are SME Valuations So Unique and Challenging?

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How to Value a Business in the Diversified Real Estate Activities Industry

Equilest

Ratios such as price-to-earnings (P/E), price-to-sales (P/S), and return on investment (ROI) help compare the company's financial performance to industry benchmarks. The income approach focuses on estimating the present value of expected future cash flows. The asset-based approach assesses the company's net asset value.

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How to Value a Business in the Real Estate Operating Companies Industry

Equilest

Ratios such as price-to-earnings (P/E), price-to-sales (P/S), and return on investment (ROI) help compare the company's financial performance to industry benchmarks. The income approach focuses on estimating the present value of expected future cash flows. The asset-based approach assesses the company's net asset value.

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Methods of Business Valuation by Their Profitability

Equilest

Methods of business valuation by their profitability are presented below. They give a vision of the company, which must be supplemented by other approaches to address the "true" price, which will result from the negotiation, i.e., the amount accepted by the assignor and financed by the buyer. . . EV = Result x Multiple. Multiple (M).