Each method provides a slightly different picture of the company, rather like photographing a building from different angles. Alone or in combination, they yield a rough estimate of the company's worth. Step two involves analyzing the company's market value. It takes into account economic and market conditions, selects and applies performance indicators and multiples based on the analyses mentioned above, and factors in results of a due diligence review before issuing a valuation opinion, often in terms of asking price or per-share price. It's a powerful capability.
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Wilkus hopes to lure financial professionals back time and again with the high-powered automated online valuation program. Wilkus admits his free online service isn't intended to replace a full business valuation. It's not meant to be an opinion as to value. There are a variety of assumptions that the system allows you to manipulate, but it does tend to take a professional valuation firm to know what assumptions are appropriate and what aren't. However, if you keep the same assumptions each time you run a valuation of your company, you can start to see trends of how you're doing, how the marketplace is performing in terms of public company comparables and how it impacts you in terms of value.