How To Calculate Market Value Using Profit Method?
Gross earnings / revenue ( 3 years P&L average )
estimated gross earnings - purchase of goods = gross profit
gross profit - working expenses ( excluding rent & loan interest )- interest on capital = Divisible Balance
working expenses => wages, utilities bill
interest on capital => cash, stock, furniture/machinery/equipment
divisible balance => gross rent, operator/tenant remuneration ( risk
Divisible Balance - Operator's remuneration / Tenant's share
How To Calculate Capital Value?
Gross Rental ( annual rental payable to landlord ) - Outgoings = Net Rental x Years' Purchase = Capital Value
