Check out what a business is worth. There are numerous reasons why a business valuation is important, with Pomanda its simple, instant and FREE.
Why get a Pomanda valuation?
Clearly anyone considering buying, selling or merging a business needs to be prepared before entering into serious discussions. We would always recommend that a full, independent business analysis and valuation is undertaken by a specialist in important transactions such as these.
However, there are many other situations where knowing what a business is worth can be valuable in itself - creating option or incentive schemes, valuing privately held shareholdings, estimating insurance coverage needs, planning for retirement, gearing up for divorce or simply because you want to know what your neighbour is worth!
At Pomanda our focus is on Relative Valuation, where the value of a company is based on the price of similar companies i.e. public traded companies in the same or related industries.
Using publicly traded companies ensures that each industry multiple is calculated from a sizeable, recognised and measurable dataset.
We calculate monthly multiples for every industry, then we adjust for several factors (such as gross margin and Illiquidity) to create a bespoke Pomanda multiple for every company that we value.
Value a business
Turnover (revenue or sales) multiples can be a helpful guide in the valuation of certain industries (such as retailers) or businesses that are not yet profitable. However, it is important to remember that turnover is not the same as profit and that an increase in sales does not always result in an increase in profits.
EBITDA (or earnings before interest, tax, depreciation and amortisation) is used to analyse and compare profitability among companies and industries by eliminating the effects of financing and accounting decisions. EBITDA multiples are widely used in mergers and acquisitions of businesses. The value of a business can also be estimated from it's balance sheet, by applying an industry multiple to the Net Asset Value.
Yes! We use the industry classification provided by Companies House to determine which industry multiple(s) to apply for a company. However if a company is incorrectly classified, or its operations have changed over time then we would encourage you to edit the 'Industry Breakdown' which will re-calculate the value of the business.
Soon we will be adding new features that will enable the editing of a company's financial data to reflect the very latest data, allow adjustments for one off events, or even to see what a business could be worth in the future.
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