Business Valuation

Tracking the estimated Business Value

The Business Valuation Component performs the business valuation – a process of estimating the total economic value of a business and its assets. Using historical or manually entered data, the widget generates an estimated business value and potential worth. The business value is calculated every month for the last 12 months.

With business insights offered by the widget, users can easily access and analyze their financial data to understand past events better and identify business problems that require attention. Nonetheless, business valuation insights can help predict future outcomes and facilitate the development of more robust strategies.

Data Sources

The solution uses a price-to-sales valuation model, taking business revenue and industry as the primary calculation factors. The data used for revenue calculation is taken from the connected Banking, Accountancy, eCommerce, and CRM apps. If the user hasn't connected any apps, or when the connected apps do not contain enough data, they can still get their business worth by manually entering Annual revenue (actual or projected):

Key Features

The Business Valuation Component calculates the business's worth using two main approaches. If there is no data from the integrated accountancy, CRM, and ecommerce systems ‒ the only option for performing business valuation is to manually provide annual revenue by selecting the appropriate range (see above). The calculator mode takes the business revenue provided by the user and industry as the primary calculation factors. In this case, the price-to-sales valuation model is static so that when the user enters the same revenue, the business value will be the same.

When the user connects data sources, the coefficient based on the user's business industry is multiplied by the company's revenue derived from the connected systems. The business value is then presented in a bar chart, where each bar designates a period of one month. The graph offers the estimated business value for six months. If the user connects multiple apps of different categories, the maximum value is considered. Likewise, when multiple business bank accounts are in place, the aggregated value will be used to calculate the business worth.

Note: the Web Component is in demo mode.