How to confirm the valuation of a company?

The new shareholders are willing to join the company, which shows that the company's history and present situation are relatively good, and more importantly, it is expected to have investment value in the future and the trend is good. This is the premise, otherwise, who will rashly "actively apply" to join a company?

There is no doubt that the company needs a valuation. How to evaluate some technical contents needs the support of experience and lessons. Of course, people also need common sense judgment. Yes, to calculate all existing assets, this is called "asset appraisal". All existing assets include two aspects, one is tangible assets and the other is intangible assets. The evaluation of tangible assets is relatively easy, but the evaluation of intangible assets is much more difficult. Intangible assets include many aspects, which will not be discussed in detail here.

After comprehensive calculation, it is convenient for all parties to accept financing and share expansion. Here, we only provide general suggestions for company value evaluation:

1. Total profit without additional investment in the next three years:

Multiply the annual capital profit rate of the first three years (or the most acceptable period) by 3, that is, the next three years, and then multiply it by the total existing capital (the data in the balance sheet is generally "owner's equity", the same below).

2. Valuation of the existing value of the company: the result of "1" plus "total existing capital".

This fund will be used for capital reorganization with new shareholders and form a new structure in the future new company shares. Examples are as follows:

Assuming that the company's existing total capital is 6,543,800 yuan, the annual capital profit rate is 33.33%, and no new shares are introduced, the total profit in the next three years will be 6,543,800 yuan. Then, the existing value of the company is estimated to be 2 million yuan. If the total cash invested by the new shareholders is 6,543,800,000 yuan, the total share capital of the new company is 3,000,000 yuan, the new shareholders hold 30% of the shares, and the original shareholders' shareholding ratio is reduced accordingly, it can be calculated.