Every year, I like to see what my business is worth to give me more goals on increasing that number every year. So here's the formula I use that I got from the teachers in our industry:
Net before Taxes
Plus
Tax Free Perks
Plus
Charitable Donations
Plus
Adjusted Cash Flow
Divided by
Return on investment (.25-.50)
Plus
Fair market value of assets
Equals
Value of your business
Net before Taxes
Plus
Tax Free Perks
Plus
Charitable Donations
Plus
Adjusted Cash Flow
Divided by
Return on investment (.25-.50)
Plus
Fair market value of assets
Equals
Value of your business