How much is a business worth with $1 million in sales?

A professional broker can help you determine if revenue (as opposed to other aspects of business income) is the best number for valuing a company. Companies in troubled industries, or where profit margins are reduced by several factors, could get lower multiples. This method calculates the cash flow that your company is expected to produce in perpetuity and then discounts it in current dollars (called net present value or NPV), while taking into account the level of financial risk indicated by your company or sector. ROI is a measure of the additional value or money you have earned as a return or net profit after paying all of your company's expenses (taxes, rents, salaries, etc.

These companies include early-stage technology startups that largely reinvest revenues in growth) or companies in fast-growing industries where profit margins are expected to be very high.

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