How to use the ValueMyBusiness website
This guide explains how to use the ValueMyBusiness calculator to estimate your company’s value, what inputs to prepare, and how to interpret the outputs.
Guide
1) What the calculator does
ValueMyBusiness provides an estimated valuation range based on the information you enter and a set of standard assumptions. It is intended to give context before you speak with advisers, lenders, or potential buyers - not as a substitute for professional advice.
2) Inputs to prepare (before you start)
- Revenue (LFY / CFY / NFY): last financial year, current financial year, and next financial year (or forecasts).
- Net income margin (CFY): your estimated or actual net profit margin for the current year.
- Growth stage: high growth, medium growth, or mature (helps set growth and risk assumptions).
- Cash and debt: balances used to bridge from enterprise value to equity value.
- Interest rate on debt: an estimate or actual blended cost of your loans.
- Asset profile: whether the business is asset-light or asset-heavy (affects reinvestment assumptions).
- Location and industry: used to select market and risk assumptions appropriate for your region and sector.
3) Optional overrides (advanced)
If you don’t know the optional inputs, you can leave them blank. The model will use standard assumptions and show them in the outputs. If you do enter overrides (for example, tax rate, capex as % of revenue, working capital as % of revenue, or an industry beta), the model will use your values instead. This can be useful for testing scenarios and sensitivities.
4) How to interpret the results
- Enterprise Value (EV): value of the operating business before considering cash and debt.
- Equity Value (EqV): EV adjusted for cash and debt — a rough indication of shareholder value.
- Valuation range: a practical range to reflect uncertainty and assumptions, not a single precise number.
- Discounted cash flows: the mechanics behind the estimate (cash flows and the terminal value).
- Discount rates (WACC): the model’s risk and financing assumptions that heavily influence valuation.
- Sensitivity tables: “what if” analysis showing how valuation changes with different assumptions.
5) Tips for SME owners and accountants
- Use realistic CFY and NFY figures: overstated forecasts can quickly inflate valuation estimates.
- Be consistent with margins: ensure your margin assumption matches how you define net income (after tax).
- Sense-check with comparables: use the implied multiples as a reasonableness check against your sector.
- Document your assumptions: save inputs and outputs to support discussions.
6) For finance and business students (learning angle)
This calculator is a practical way to learn core valuation concepts: enterprise value vs equity value, discount rates (WACC), cash flow forecasting, terminal value, and sensitivity analysis. Try changing one variable at a time (for example growth stage or capex %) to see how valuation responds.
7) Supporting pages and where to go next
- Terms / Privacy / Cookies: explains how the website is operated and how analytics preferences work.
- Feedback: share suggestions or report issues to improve the tool.
8) Important note
All outputs are estimates based on unverified inputs and simplified assumptions. For decisions involving fundraising, a business sale, tax, financial reporting, investments, or any other financial decisions, consider professional advice and a tailored valuation.