INDEX
1. What is business valuation?
2. ANEPSA methodology for estimating the value
3. Financial and operational analysis
4. Market references and multiples
5. When is a professional valuation needed?
6. Basic glossary of business valuation
Knowing the value of a company is key to making strategic decisions in processes of buying and selling, mergers and acquisitions, incorporation of partners, raising capital, successions, corporate reorganizations or estate planning.
Business valuation allows estimating a range of fair value considering the company's financial situation, its ability to generate cash flows, assets, debt, profitability, risks, sector, and market conditions.
Use our PRO Valuation Calculator and get a preliminary estimate based on verified multiples of the Latin American market for 2026, quickly and for free.
Verified Multiples May 2026 · USD
At ANEPSA we apply a methodology based on financial, equity and market criteria, adapting the analysis to the type of company, sector, available information and valuation objective
The company's revenue, EBITDA, margins, cash flow, cost structure, debt, available cash, and value creation capacity are reviewed.
When sufficient information is available, market multiples, comparable transactions, and industry benchmarks are considered to compare the estimated value against similar companies.
The value of a company can vary depending on its size, founder dependence, customer concentration, quality of financial information, operational formalization, liquidity, sector risk, and growth prospects.
A valuation can distinguish between the total value of the business operation and the equity value attributable to the shareholders. To do this, adjustments are made for financial debt, available cash, and other relevant elements of the capital structure.
| Term | Concept |
|---|---|
| EBITDA | Financial indicator that approximates operating profitability before interest, taxes, depreciation and amortization. |
| Multiple | Factor used to compare similar companies based on indicators such as sales, EBITDA or net profit. |
| Enterprise Value | Total value of the business operation before discounting net financial debt. |
| Equity Value | Equity value attributable to partners or shareholders, after adjusting debt and cash. |
| Net Debt | Difference between financial debt and available cash. |
To understand what the PRO Valuation Calculator does, let's look at a simplified example with illustrative figures (they do not represent a real case or the current multiple of any sector)
In addition to the comparable multiples method used by our PRO Valuation Calculator, there are other approaches to estimating a company's value. The choice of method depends on the type of business, the available information, and the valuation objective.
| Method | When to use | Main advantage | Main limitation |
|---|---|---|---|
| Comparable multiples (used in this calculator) | When there are similar companies or transactions as a reference | Quick and easy to communicate | It depends on how comparable the available references are. |
| Discounted Cash Flow (DCF) | Companies with reasonably predictable cash flow projections | It reflects the expected future value of the business | Highly sensitive to growth and discount rate assumptions |
| Book value | Companies with many tangible assets or in partial liquidation | Simple and based on financial statements | It does not reflect the value of future cash flow generation or intangible assets. |
| Liquidation value | Scenarios of closure, forced sale of assets or bankruptcy | It provides a minimum value floor | It tends to underestimate the value of an ongoing business. |
The multiple applied to a company is not the same across all sectors, even if they have similar EBITDA. The difference is mainly due to three factors: the sector's growth expectations, its level of risk, and how dependent the business is on fixed assets, key personnel, or external conditions such as weather or commodity prices.
Greater growth and scalability expectations, with less dependence on fixed assets.
Relatively stable demand and a regulatory framework that reduces uncertainty in flows.
High capital intensity (machinery, inventory) and sensitivity to input costs.
Exposure to commodities, seasonality, and climatic factors that increase the variability of flows.
Purchase frequency and brand strength, which support more predictable revenue.
High dependence on talent and key clients, which can concentrate business risk.
| Situation | Usefulness of valuation |
|---|---|
| Buying and selling of companies | Define a reasonable value range for negotiation. |
| Mergers and acquisitions | To support investment or integration decisions. |
| Members joining or leaving | Estimate the economic value of a share. |
| Inheritance and transfers | Facilitate asset and corporate agreements. |
| Financing | Presenting economic information to banks or investors. |
| Strategic planning | Measure the value generated by the company. |
| Corporate reorganization | Evaluate business units, assets, or stakes. |
A company's value depends not only on its revenue or assets. Profitability, financial structure, risks, sector, projections, available information, and market conditions also play a role. Therefore, try our calculator as a starting point and contact an ANEPSA specialist for a professional business valuation.
