NPRC SPECIAL REPORT – NOV. 2020
“EXCESS EARNINGS” ARE KEY TO HIGH COMPANY VALUATIONS!
NPRC is offering, for a limited time, a special report detailing real world valuations for 48 printing firms. The report features four special valuation charts. Each chart features key factors used to arrive at a typical company valuation. The charts examine factors such as – annual sales, excess earnings, excess earnings as a percent of sales, net assets and assigned earnings multipliers.
The valuation charts then summarize the estimated value arrived at for each of the 48 firms in question, as well as the ratio of value to annual sales.
When it comes to establishing the value of a printing company, there’s one fact that stands out above all the rest – “The value of a company has little to do with annual sales.” The charts depict that while one firm with sales of $717,000 can be worth almost $676,000 (or 94% of it sales), a similar size firm with almost identical sales of $745,000 can be worth less than $81,000 (less than 11% of sales.) The same comparisons can be made regardless of annual sales volume.
How do you explain these great variations? Most variations in company valuations can be explained by a company’s ability or inability to generate “excess earnings.” What are “excess earnings?” Complete the form below to download your FREE copy of this special report.