1. 10 secondsvaluation Ifyouneed to findthevalueof a company in a second do thefollowingmath: CashGeneration / Risk Rate
2. Parameters CashGeneration: ifyouknow, use EBITDA. Ifyou do not, calculatethe OPERATIONAL cashgeneration. Do not include interestordebtpaymentsand CAPEX. Risk Rate: use therisk rate attached to the business riskyou are evaluating. Ifyou do notknow, use fixedincome. In this case youwillfind a valueabovethefairvalue.
3. Restricitions Thissimplificationway to calculatethevalueof a company does notconsiderany future CAPEX orworking capital variations. Thissimplificationwillgiveyou a valuebelowthefairvaluebecause it does notaccount for anyincrease in the business activityyou are evaluating. Anydoubt? E-mail me at gomes.1963@me.com