Business Valuation

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BaltResinValuationMetricsquestion2.xlsx

Sheet1

Baltimore Resin Valuation & Metrics VALUATION OF BALT RESIN
Valuation Metrics SIC 5000 SIC 5100 SIC 2821
VALUE/SALES 0.45 0.42 1.16 Weighted Multipliers Average from P&L
VALUE/INCOME 3.10 3.10 3.30 VALUE/SALES 0.62 7859954.50 4849591.9265
Value/BOOK 2.20 2.00 7.30 VALUE/INCOME 3.15 106343.75 334982.8125
Value/BOOK 3.41 1576510.25 5368017.40125
WEIGHTS 40% 35% 25% Value/DCF $518,459
VALUE/SALES 0.617
VALUE/INCOME 3.150 WEIGHTS ON METRICS
Value/BOOK 3.405 VALUE/SALES 20% 969918.3853
VALUE/INCOME 40% 133993.125
Value/BOOK 20% 1073603.48025
*Assumptions/Comments: Value/DCF 20% 103691.813587386
Considering financial data from 2008-2011 because of the trend of increasing sales, but decreasing income. Year 2011 is not adequate for valuation
Using the yearly averages from the P&L and Tax Return as it is common that they may differ slightly SUMMATION 100% $ 2,281,206.80
Did not include EBIT, EBITDA, or Gross Profit metrics as we didn't feel they were applicable in this case and/or woud not produce a material change in the valuation