Calculating the value of a company

Definition :

Industry refers to the area in which your business operates, for example, technology, real estate, or financial services.

Utility :

Industry helps determine the potential value of your business based on the specifics of your field. Some industries, such as technology or healthcare, are often perceived as having a higher value due to their high growth or attractiveness.

Functioning :

This field allows a weighting coefficient to be applied in the calculation of the value, based on economic trends and the particularities of each sector.

Definition :

Turnover corresponds to the total amount of sales or services provided by the company over a given period, excluding taxes.

Utility :

Revenue is a key indicator for assessing the size and financial performance of your business. A three-year average helps to smooth out the impact of annual variations.

Functioning :

By reporting the three-year average, you provide a stable and reliable basis for calculating the value of the company.

Definition :

Operating costs include all expenses necessary for the operation of the business, such as salaries, rent, supplies, and maintenance costs.

Utility :

Operating costs help estimate the profitability of your business. Knowing the three-year average helps smooth out any variations.

Functioning :

These costs are used to calculate metrics like EBITDA and to understand your business's ability to generate profits.

Definition :

Net profit is the amount remaining after deducting operating costs, financial charges, depreciation, and income taxes.

Utility :

Net profit is one of the most important indicators for assessing the profitability of a company. It reflects the amount remaining after all expenses and taxes.

Functioning :

The three-year average helps smooth out variations and reflect a more realistic picture of the company's profitability.

Definition :

EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It represents the company's ability to generate profits from its core activities only.

Utility :

EBITDA is used to measure the operational performance of your business, without taking into account financial expenses, depreciation, and taxes.

Functioning :

It is calculated automatically from revenue and operating costs, but you can change it if you have more precise data.

Definition :

Assets include all property owned by the business, such as buildings, equipment, inventory, and bank accounts.

Utility :

Asset value indicates the wealth of your company and its ability to cover its debts. It is essential to assess financial strength.

Functioning :

This data is directly used in the calculation of the company's value, by subtracting the level of debt.

Definition :

It corresponds to all of the company's debts, such as bank loans, supplier debts, or financial obligations.

Utility :

The level of debt makes it possible to assess the company's ability to meet its financial commitments and its overall risk.

Functioning :

Liabilities are subtracted from the value of assets to arrive at a realistic estimate of the company's net worth.

Definition :

Growth represents the evolution of the company's turnover or profitability over a given period.

Utility :

Growth reflects the company's future potential. Strong growth is a positive indicator for investors.

Functioning :

You choose a category (Strong, Moderate, Stable, or Declining). This data influences the final calculation by applying a coefficient corresponding to the dynamics of your company.