CNET Editors' review
Investors who want to determine the possible returns of their funding, plus figure the impact of amortized goodwill and other factors, will certainly want to check out this preformatted Excel spreadsheet.
The Investment and Business Valuation tool is a preformatted spreadsheet with four tabs: Assumptions, Before (investment), After (assumptions regarding value of investment), and Results (Return on Investment). The initial tab, Assumptions, lets you choose either New or Existing investment and to enter a number of key factors: taxation and amortization, capital, and cost of capital--including risk-free rate, market risk premium, and weighted cost of capital. The interface is well-designed for leading the user step by step through entering assumptions regarding taxable and nontaxable revenue, operating expenses, investment expenses, existing assets, and capital expenditures for up to five years. The spreadsheet performed very well in our tests. Entering data--and knowing where to enter data--was a simple matter, although for the latter, some understanding of accounting principles is necessary. We were pleased with the built-in financial analysis charts and their ease of use. Also very handy were charts for Depreciation, Asset Disposal, Goodwill, Tax Calculation, and other elements important for determining potential ROI. For instance, the Annual Cash Flow trending chart and the Comparable Investment Score charts provide excellent data for helping to make important investing decisions.
The trial period is adequate for anyone familiar with investment procedures, and the price is nice. This is a pleasing little spreadsheet to add to your tool portfolio.
Publisher's Description
From Business Spreadsheets:
The Excel Investment and Business Valuation template is ideal for evaluating a wide range of investment, financial analysis and business plan scenarios. Business valuation is based on the traditional discounted cash flow method but also evaluates economic value added valuation (EVA), accounting impact and additional quantitative investment performance indicators. The logical input flow makes usage straightforward to gain quick results for business strategy decision making. Simple and flexible input with embedded help prompts facilitates application to required valuation dynamic. The financial accounting impact is analyzed including Profit and Loss Statement, Balance Sheet and Cash Flow Statement. An optional tools id included to calculate the weighted average cost of capital under the capital asset pricing model. Economic value added calculation parameters include flexibility for identifying economic costs with allocated amortization periods. The financial calculations accurately account for asset purchases, disposals and depreciation with capital and gearing impacts. Investment and business valuation can be applied to new businesses or changes to existing investments. This functionality also allows the comparison between two alternative strategies, such as lease versus purchase. An alternative finite terminal value calculation can be applied to mimic new economy investment and product life cycles where return cannot be expected to persist indefinitely. The customizable Comparative Investment Score can be set to evaluate and prioritize different investments depending on the prevailing business environment. The Investment and Business Valuation template is compatible with Excel 97-2010 for Windows and Excel 2011 or 2004 for Mac as a cross platform business valuation solution.
What's new in this version: Better compatibility with Excel versions and operating systems Mac and Windows
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"Well set-up and very easy to use."
Version: Investment and Business Valuation 1.0
Pros
A large number of investment calculations including economic value added.
Cons
requires enabling of VBA macros
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