Enter Details
Individual details
Name
% of company
Company details
Average of last 3 years Net profit
£
PE ratio as appropriate for business
Net assets of the business
£
The average of the last three years net profit should be used.
This is usually turnover less cost of sales less all overheads and financial arrangements.
Price Earnings ratios are quoted in the share pages of the financial press. However these figures are for quoted businesses which often have a greater liquidity than a private company and as such a lower multiple should be applied.
Suggested ranges to consider:
- Steadily increasing profits - five to seven
- Regular but not increasing profits - three to four
- Slightly reducing profits - one to two
- No profits or losses - not appropriate method
Suggested ranges to consider:
- Steadily increasing profits - five to seven
- Regular but not increasing profits - three to four
- Slightly reducing profits - one to two
- No profits or losses - not appropriate method