The profit multiple which is used in the calculation can be set on the Assumptions sheet and should be based on the appropriate industry standard for your business and country. Users may need to research this online or stick to our default profit multiple. Please just note that this method of calculating a business valuation is a lot less accurate than calculations which are based on discounted cash flow and the 3-year and 5-year discounted cash flow business valuation calculations should therefore carry more weight than the valuation based on the profit multiplier.

CopyFinancial > The profit multiple which is used in the calculation can be set on the Assumptions sheet and should be based on the appropriate industry standard for your business and country. Users may need to research this online or stick to our default profit multiple. Please just note that this method of calculating a business valuation is a lot less accurate than calculations which are based on discounted cash flow and the 3-year and 5-year discounted cash flow business valuation calculations should therefore carry more weight than the valuation based on the profit multiplier.