PE Multiples in Valuing Small Businesses

PE Multiples In Valuing Small Businesses

The other day, someone came to me about valuing their business and mentioned that he thought his $1 million profit before interest and tax business was worth $20,000,000 because companies in his industry on the stock exchange traded on Price to Earning (PE)…

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Terminal Value

Terminal Value In most business valuations, the business is expected to run in perpetuity.  The exception being businesses with a finite life like mines or toll roads. Valuations will forecast earnings for say 5 or 10 years and then the…

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Concepts of Value in Business Valuations

Concepts Of Value In Business Valuations

Value has different meanings to different people depending upon their opinions, or circumstances in which it applies. The value of a luxury motor car will have different values to people depending on their income level, perceptions of the vehicle, and…

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