HOW DO WE DETERMINE THE VALUE OF REAL ESTATE:
Yearly rent x 10 = Value of real estate (not the business)
HOW DO WE DETERMINE THE VALUE OF AN AUTO REPAIR BUSINESS:
Net earnings x 3 or 5 = Value of business
- Use EBITDA to figure net
These estimates and formulas are based on average stores, some figures might be lower or higher based on market conditions.