What is the best method to value a business?

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The best method depends on your business type. DCF is ideal for mature companies with predictable cash flows. Market multiples (EBITDA or revenue) work well for comparing to similar companies.

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Appraisal Engine

Business Valuation

Quantify your legacy. Estimate enterprise value using industry-standard DCF, EBITDA multiples, and net-asset methodologies instantly.

Annual Free Cash Flow ($) *

Current year's free cash flow

Expected Growth Rate (%) *

Annual cash flow growth (5-year projection)

Discount Rate / WACC (%) *

Weighted average cost of capital

Terminal Growth Rate (%) *

Long-term sustainable growth (usually 2-3%)

Estimated Business Value

Based on discounted cash flow

Valuation Breakdown

5-Year Projected FCF (PV)$NaN

Terminal Value (PV)$0

Valuation Tips

DCF: Best for mature businesses with predictable cash flows
Multiples: Quick estimate based on comparable companies
Asset-Based: Most conservative, good for asset-heavy businesses
Consider using multiple methods and averaging the results

Economic Appraisal

Business valuation is a process and a set of procedures used to estimate the economic value of an owner's interest in a business. Precision in appraisal is the foundation of any successful exit or capital raise.

Intrinsic Value

Calculated based on free cash flows (DCF), focusing on the business's ability to generate future wealth and discounted for risk.

Market Multiple

Comparison against recent industry transactions using EBITDA or Revenue multiples to determine current market appetite.

Value Drivers

Strategic buyers pay for synergy, while financial buyers pay for cash flow. Optimizing these drivers can increase your enterprise multiple by 2x-3x.

Proprietary Technology & IP

Recurring Revenue Percentage

Customer Diversification

Standard Operating Procedures