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Yes, there are several standard formulas that are taught in MBA Corporate Finances courses, usually via some variant of Discounted Cash Flow. They're just a st
by GFischer 15y ago
Yes, there are several standard formulas that are taught in MBA Corporate Finances courses, usually via some variant of Discounted Cash Flow.
They're just a starting point, and might not be accepted by the other party, but it helps to put a dollar number on your company :)
The Wikipedia article sounds like a good start for your investigation:
http://en.wikipedia.org/wiki/Business_valuation http://en.wikipedia.org/wiki/Business_valuation
Edit: agree with both soho and patio - your company is worth whatever someone is willing to pay for it, and there are a lot of "standard" formulas taught in B-school so you can pick and choose whichever you like.
I still believe that using a formula can help you at least give some anchor to how much it might be worth. (the discounted cash flow will give you a number similar to soho's I think)