How to Perform the Rule of Thumb Method

Select Valuation Methods.

 

Select Market Approach.

Select Rule of Thumb under Option 2: Use the Rule of Thumb as a reasonableness check.

Choose the multiples you would like to use, or add your own under Enter your own multiple. Then choose Save and Continue.

Enter your multiple and apply discretionary weighting to each. Subject Company values are provided for preset multiples only.

Note: At this time, you do have the option to update subject company values to adjusted financials by selecting Update from Adjusted Financials.

Make any necessary adjustments to debt and non-operating assets.

Add comments to individual multiples or in the general commentary box.

Select Save and Continue.