Business Book Value Calculator

Use this calculator to determine the value of your business today based on discounted future cash flows.

Business book value calculator. Similar to bond or real estate valuations the value of a business can be expressed as the present value of expected future earnings. The multiple is similar to using a discounted cash flow or capitalization rate used by top business. Consequently higher book value represents a greater return for the investors and shareholders.

The larger the common stock holder s equity the larger the book value per share. Both methods are great starting points to accurately value your business. You can use this book value calculator.

Just enter in the information on our valuation spreadsheet and our software will calculate the value of your small business. Book value or intrinsic value for a company is pretty much the same thing it s the dollar value of the firm after you subtract debts from the value of assets the business owns. Book value is used to determine the market position of a company.

This is done by comparing the book value figure with the market value of the company. The book value per share is a measure of a stocks value relative to the total common stockholder s equity. A business valuation calculator helps buyers and sellers determine a rough estimate of a business s value.

Book value per share will be bvps 495 61 book value calculator. The formula we use is based on the multiple of earnings method which is most commonly used in valuing small businesses. Therefore the calculation of book value per share will be as follows bvps total common shareholders equity preferred stock number of outstanding common shares 2 93 491 00 cr 592 18 cr.

Uses of book value. This is useful information because you can compare book value to the company s stock price and gain some insight into whether the business is overvalued or undervalued. Two of the most common business valuation formulas begin with either annual sales or annual profits also known as seller discretionary earnings multiplied by an industry multiple.