How to calculate my company value for free?

You can estimate your company's value in 30 minutes using two methods: the Praktikermethode (statutory floor) and EBITDA multiples (market value). While a professional valuation adds precision, a self-assessment provides a solid starting point for planning. ### Technical Explanation #### Method 1: Praktikermethode (5-Minute Version) 1. Find your average net profit from the last 3 years of tax returns 2. Divide by 0.0875 (2024 capitalization rate) = Ertragswert 3. Find your equity from the latest balance sheet = book Substanzwert 4. Apply the formula: (2 × Ertragswert + 1 × Substanzwert) ÷ 3 Example: CHF 250,000 profit ÷ 0.0875 = CHF 2,857,143. Equity = CHF 800,000. Praktikermethode = (2 × 2,857,143 + 800,000) ÷ 3 = CHF 2,171,429 #### Method 2: EBITDA Multiple (10-Minute Version) 1. Calculate EBITDA: Net profit + interest + taxes + depreciation + amortization 2. Add back owner adjustments: excess salary, personal expenses, one-time costs 3. Select your sector multiple from the ValIndex Multiples Table 4. Multiply: Normalized EBITDA × Sector Multiple = Enterprise Value 5. Subtract net debt (bank loans - excess cash) = Equity Value (your payout) Example: EBITDA CHF 500,000 + CHF 150,000 adjustments = CHF 650,000 normalized. Multiple 5.5×. EV = CHF 3,575,000. Net debt CHF 400,000. Equity = CHF 3,175,000 #### Why Self-Assessment Has Limits * You'll miss hidden reserves (inventory, real estate, machinery) * Normalization requires forensic accounting expertise * The right multiple needs actual comparable transaction data * Emotional bias inflates estimates by 20-40% on average