Company valuation

After seeing @GossipKing’s thread on companies,I had a question. How does one do a valuation of companies here in Kenya.most of us Jere have companies,how would one go about valuing it given that some are just briefcase co’s but have clients and some contracts? Saidia tafadhali

The easiest is 12X your Annual revenue

Naaah x12 is too much we are not even a x10 economy. The multiple is based on the fact that you guarantee the business will give that income over the multiple of years. So x12 means that you can guarantee last years income for 12 yrs so they should buy the company on a future 12 yrs valuation which is unrealistic in our economy. try x4 past annual income. Income is what is net profit that is actually realistic

I fully agree with you! 100%