How are companies valuated? how much will someone pay for your venture if you were to sell it? The traditional 3 ways for valuation are:
* A multiple of your revenue (5 times?)
* Discounted Cash Flow Analysis
* Comparing with Public Companies
* Change of Control analysis (mergers and acquisitions price for similar companies)
For week 12 assignment, after studying the posted material and your research, research and write a summary of what you think your venture would be worth after it is established. Try to use one of these techniques and assess a rough estimate of your company’s value.
As per my research, it looks like the Multiple of Revenue Method should be chosen. Please write the valuation for SanaPath based on this method. We should still briefly describe the other methods as well.
