What is Business Calculation and methods to calculate it??
What is Business Valuation ? Business valuation is a process and a set of procedures used to estimate the economic value of an owner's interest in a business. Valuation is used by financial market participants to determine the price they are willing to pay or receive to effect a sale of a business. It is basically calculated for company's revenue and it gives a idea to Venture Capitalist for deciding how much to invest in it. Valuation also determines company's profit and gross margin. Valuation can be also on basis of present or future. Present valuation determines company's current status, profitability, gross margin, market share and all other depending factors. Future valuation determines company's status, profitability, gross margin, market share and all other depending factors in coming years or decades. Note: Future valuation extended time period is not fixed it may vary from VC to VC. It is mainly calculated for VC as well Angel I...