What is my business worth?

The most widely used valuation methods to value your business are the dividend method, the earnings multiple method, the discounted cashflow method and the asset-based method. Valuing a business is a complex task. We at MacIntyre Hudson Corporate Finance have the required competencies and experience to assist and advise you on valuing your business. Below is a brief description of each method.

• Dividend yield: This basis of valuation is considered appropriate when evaluating a minority shareholding. This method calculates the value of the business by dividing the dividend by an appropriate dividend yield.


• Price earnings: This basis of valuation is considered appropriate when evaluating a majority shareholding. This method capitalises the appropriate sustainable after tax earnings at an appropriate price earnings ratio in order to arrive at a valuation.


• Discounted cashflow: This basis of valuation is considered appropriate when evaluating a majority shareholding. This method calculates the value of the business by discounting the future cashflows by an appropriate discount rate.


• Asset-based: This method looks at the assets of the business and values based on the fair or open market value of the assets. This method is normally most appropriate when valuing a majority shareholding and/or when the other methods above are not appropriate due to negative earnings, a zero dividend policy or a negative net present value cash position.