Free Business Valuation Template

Collect the financial statements for the previous years. These statements include the income statement, balance sheet, and cash flow statement. These documents are crucial for assessing the company's financial performance and position.

Identify and extract key financial figures from the collected financial statements. These key figures include revenue, cost of goods sold, operating expenses, assets, and liabilities. These figures will be used for analyzing the company's financial performance and valuation.

Analyze the extracted key figures to calculate the historical growth rates for revenue, cost of goods sold, operating expenses, assets, and liabilities. These growth rates provide insights into the company's financial performance trends and can be used for projecting future financial performance.

Utilizing the calculated historical growth rates, project the company's future financial performance. This projection is based on the assumption that the historical growth rates will continue in the future. It helps in estimating the company's potential revenue, expenses, profit, and other financial metrics.

Apply the concept of time value of money to calculate the present value of future cash flows. This involves discounting the projected cash flows to reflect their value in today's terms. The discounted cash flows provide a more accurate estimate of the company's value in the present.

Sum up all the present values calculated in the previous task to determine the Enterprise Value of the company. The Enterprise Value represents the total value of the company's equity and debt.

Take into account the company's cash and debt balances to adjust the Enterprise Value. This adjustment ensures a more realistic valuation by considering the financial resources and liabilities of the company.

Compare the estimated value of the company with the valuations of similar companies in the industry. This comparison provides insights into the company's relative value and helps in assessing its competitiveness in the market.

Consider strategic factors that may impact the company's valuation. These factors include market conditions, competitive landscape, industry trends, and potential growth opportunities. Adjust the valuation accordingly to reflect these strategic considerations.

Prepare a comprehensive business valuation report based on the gathered information and analysis. The report should include details about the company's financial performance, future projections, valuation methods used, and key assumptions made. This draft report serves as the basis for further review and refinement.

Incorporate any feedback received on the draft business valuation report and make necessary revisions. Finalize the business valuation report by addressing the feedback, ensuring accuracy, and presenting the findings in a clear and concise manner.