Company Valuations

By changing any value in the following form fields, calculated values are immediately provided for displayed output values. Click the view report button to see all of your results.

Financial Calculators from
Dinkytown.net

KJEFontHeading KJETitleExtra

*indicates required.

Expected annual growth:*This entry is required.Enter an amount between 0% and 40%

Weighted average cost of capital:*This entry is required.Enter an amount between 5% and 100%

Net cash flow:

Years of cash flow to include:*This entry is required.Enter an amount between 1 and 100

Cash flow from operations:

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Operating profit:*This entry is required.Enter an amount between -$10,000,000,000 and $10,000,000,000

Interest expense:*This entry is required.Enter an amount between -$10,000,000,000 and $10,000,000,000

Interest income:*This entry is required.Enter an amount between -$10,000,000,000 and $10,000,000,000

Depreciation and amortization:*This entry is required.Enter an amount between -$10,000,000,000 and $10,000,000,000

Income taxes:*This entry is required.Enter an amount between -$10,000,000,000 and $10,000,000,000

Change in inventory:*This entry is required.Enter an amount between -$10,000,000,000 and $10,000,000,000

Change in accounts payable:*This entry is required.Enter an amount between -$10,000,000,000 and $10,000,000,000

Change in accounts receivable:*This entry is required.Enter an amount between -$10,000,000,000 and $10,000,000,000

Other net change:*This entry is required.Enter an amount between -$10,000,000,000 and $10,000,000,000

Cash flows from investing:

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**FIG_GRAPHTITLE** Column Graph: Please view the report to see detailed calculation results in tabular form.

How Growth Affects Business Valuation

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Definitions

NPV Value of your business

This is the value of all of your future cash flows discounted in today's dollars at your Weighted Average Cost of Capital (WACC).

Expected annual growth

This is the rate you expect your business to grow. This rate is only used on years 2 and above to estimate your future cash flow.

Weighted average cost of capital (WACC)

This is the cost of capital, or the interest rate, your investors require to put money into your business. Unless you are a Fortune 500 company with excellent business credit scores, this rate should be at least 12% to 25%. For small businesses that rate can be much higher.

Years of cash flow to include

This is the number of years that the projection will include in the value of your business. For example, if you include 100 years (the maximum) we calculate the present value of all future cash flows generated for the next 100 years into your business' value. Entering a high number would assume that the business would continue with the current projections for that entire length of time. You may wish to reduce this projected period if you have a known end date for the business cash flows, or to make a more conservative estimate of the value.

Operating profit

This is your total profit before interest and taxes. This is often called Earnings Before Interest and Taxes or EBIT.

Interest expense

Total interest expense for the year.

Interest income

Total interest income for the year.

Income taxes

Total income taxes paid for the year.

Depreciation and amortization

If you had any depreciation on equipment or buildings enter those amounts here. They are added back into your cash flow.

Change in accounts payable

If you had a net change in your accounts payable, enter the change here. If you had an increase in accounts payable, your cash flow goes up. If you had a decrease in your accounts payable, your cash flow is reduced.

Change in inventory

If you had a net change in your inventory, enter that amount here. If you are holding more inventory your cash flow is decreased.

Change in accounts receivable

If you had a net change in your accounts receivable, enter that amount here. Reducing your accounts receivable by collecting money owed more quickly can increase your cash flow and your valuation.

Other net change

Enter any other net change in other assets or liabilities that impacted your cash flow for the period.

Capital expenditures

This is the amount you spent on capital equipment and buildings that you were not able to expense for the period. If you were able to expense the expenditure, it is already accounted for in your EBIT.

Additional investment income

Enter any other investment that increased or (decreased) your cash flow for the period.

Business Valuation Calculator