When you visit the page of our Valuation Calculator, you can immediately see the form you need to fill out for us to be able to provide you with an indicative valuation for your company. Besides contact details we need to be able to reach out to you later and explain the indicative valuation in more detail, we also need few details about your company.
These details are the following:
- Your company’s annual revenues and EBITDA
- Industry of your company
- Which country is your HQ located at
- Indication whether your company is private or public
It is best, if you provide yearly revenues and EBITDA for the last year, because our calculation model uses the data for the last year as well. Obviously, this means that your company indicative valuation reflects indicative value at the end of the last year – and not necessarily later.
When you look at the list of industries, you should select the one that covers the majority of the business your company does. Nevertheless, you should pick the industry carefully, because it influences the final indicative valuation the most.
Currently, the model only works for European countries, although we do plan to update the model with mode detailed data and include coverage for the whole world, including US, Asia and other parts of the world.
Primarily, our calculator is meant to serve private companies, which usually do not have an up to date insight in their respective valuation. Although we do use the data from public markets to calculate the indicative valuation, we also apply a certain discount factor in the calculation of the indicative valuation of a private company.
OK, I understand the above, but how exactly do you calculate the indicative valuation?
The data we use for our indicative valuation model comes from compiled data by professor Aswat Damodaran, who compiles the data on a yearly basis (please see http://pages.stern.nyu.edu/~adamodar/ if you are interested to learn more). Specifically, we use the data on EBITDA and revenue multiplicators across industries and countries from around the world.
With the help of appropriate multiplicators we calculate 2 values for your company – EBITDA multiple and revenues multiple, from which we calculate an average that we use as the base for your company’s valuation. If your company is a private company, we then apply a certain discount to the valuation (because the data used was derived from public companies). As last but not least, we then apply a certain range to the valuation, which ultimately determines the indicative valuation that we share with you.
If you have any questions, please, do not hesitate to reach out to us. We are looking forward to your feedback and to you using our solutions!