All kinds of things come in to play when you try to figure out how much a business is worth, but there are two key things to keep in mind when figuring out how to value a company.
One: why do you need to know? Business value isn’t an absolute measurement. I might be calculating my business worth for one reason, and you might be calculating your business worth for a totally different reason. The results will undoubtedly be influenced by our different reasonings, which will determine how we each measure business value, and under what circumstances we set out to do it. These elements are generally known as the standard of value and the premise of value.
Standard of value is a comp