Tuesday, January 30, 2018

Valuation of a Firm

How much is that busy car wash business worth?  




How much should Len and Jen sell their bake shop for? 

This week, we will learn how to value a company using some of the formulas that we already discussed in class.

We will go through two examples of how to do this using an Excel workbook.

To access the spreadsheet, please click on this link.



Comparing company profit margins



Ever wonder just how profitable a company or industry can be?


To compare how efficient a company is at making money, we calculate the firm's profit margin, which is equal to the operating profit / total sales.



To access the spreadsheet exercise, please click on this link.

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