The Valuation in the ProfitCents Projection report is an excellent tool to use for a management level valuation for consulting purposes.
Applications:
- Succession Planning
- Discussions with Management
- Buying and Selling
ProfitCents Projections uses a discounted cash flow method to value a company. The premise behind this method is that a company should not have a price higher than the amount of cash it will generate in the future. The time value of money is also factored in; $100 today is worth more than $100 in ten years, or even a year. This is an informal valuation for consulting purposes. The reliability of this valuation depends heavily on the length and accuracy of the projection. It is STRONGLY recommended to review your data in the Projections tab of the report before examining the valuation.
Download the document to the right for more information on the methodology behind the DCF.