DESCRIPTION
Company valuation is very important because it gives the actual present value of the company and the terminal value. Companies go for company valuation when they need investors on board to invest in the company, when selling the company, or in the case of mergers and acquisitions. The Business Consultant provides you and your company with an efficient Company Valuation Excel Template to help you know your company's value in any of the above cases.
Importance of Company Valuation
It gives a clear idea about the company's value to the investors, and a high valuation attracts investors to invest in a company.
If you are going to sell your company for any reason, you must know the actual value of the company. You must do company valuation months before selling the company so that you can have time to increase the value of the company to achieve a high selling price and can negotiate with the buyer.
Every business should aim to compare the previous year's valuation to know the company's growth and the area of improvement and take corrective actions accordingly.
The template contains the following Sections.
Weighted average Cost of Capital (WACC)
The peach-filled columns are the input you have to change according to your company's data, and the template will update the calculations accordingly. Like the investment amount loan etc., the WACC will be calculated automatically based on the inputs you will enter.
NPV of the Company
The NPV, IRR, and Minimum expected equity to investors are calculated through the DCF method. The section will estimate your company's value based o the inputs you enter.
Payback Period
The payback period is the time to recover the investment cost. Investors do need to know the payback period before making any investment.
Benefits of Company Valuation Excel Template tool
Uniform Methodology:
The primary benefit of a Company Valuation Excel Template is that it promotes a uniform methodology. By which the user can compare changes in valuation over time.
Achieving Best Returns:
Through meticulous financial planning, the user can maximize the control of their budget and opportunities to set their financial goals.
Mitigate Risk:
The Company Valuation Excel Template tool can mitigate financial risk and help to identify the returns and cost of equity on investments.
Provide Financial Assistance:
No composing equations and formulas, no designing and programming, and no need to hire a costly external consultant required.
Well-Formatted & Presented:
All statements are accurately presented and connected with the input and formatted in a well-structured way. Also, it follows a particular color theme, which is consistent in all sheets.
Why you Should Buy this Company Valuation Excel Template tool?
Save Time – This allows you to spend less time preparing sheets and more time on personal development and control.
Tested – This company valuation tool is custom-made and has been used by various individuals with positive feedback.
Support Strategic Decisions – This company valuation tool also represents a critical tool that lets you see the larger picture and make strategic decisions based on up-to-date financial insights.
Bottom-Up Approach – This tool uses a sophisticated bottom-up approach to company valuation, financial evaluation, and planning, allowing users to determine a deep and comprehensive understanding.
The template offers clear visualizations that make complex data easy to digest, allowing executives to quickly grasp key financial metrics. With its user-friendly interface, you can efficiently assess your company's performance and make informed decisions that drive growth.
Got a question about the product? Email us at support@flevy.com or ask the author directly by using the "Ask the Author a Question" form. If you cannot view the preview above this document description, go here to view the large preview instead.
Source: Best Practices in Valuation Model Example Excel: Company Valuation Excel Template Excel (XLSX) Spreadsheet, Oak Business Consultant
Valuation Model Example M&A (Mergers & Acquisitions) Valuation Banking Manufacturing Wind Down Airline Industry Entrepreneurship Fundraising
Download our FREE Strategy & Transformation Framework Templates
Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S Strategy Model, Balanced Scorecard, Disruptive Innovation, BCG Experience Curve, and many more. |