Step 1) Make a realistic five year forecast and sum all revenues over this set.
Step 2) Apply pixie dust and happy thoughts.
Step 3) Adjust ratio depending on quality of data set and desired outcome.
Basically you're pulling a number out of your ass that you hope correlates to how much money you're going to make. If you're doing a valuation for investment purposes, someone else will most likely be doing the number crunching for you.
Basically you're pulling a number out of your ass that you hope correlates to how much money you're going to make. If you're doing a valuation for investment purposes, someone else will most likely be doing the number crunching for you.