







The Future Maintainable Earnings (FME) approach to valuation is a robust method that focuses on the potential future earnings of a company, adjusted for abnormal revenue or expenses, to determine its value.
Determine the target company’s maintainable earnings. Apply the comparison earnings multiple to the target company's maintainable earnings to calculate the target company's value.
This method is a modified version of the discounted cash flow method, but which predominantly uses historical profitability to formulate an assumed future maintainable earnings figure.
Once valid weightings are entered the Future Maintainable Earnings value will be generated. You can select predefined weightings using the dropdown available. Depending on the number of periods available the following options are available. Multiple allows you to add the multiple for the valuation.
Learn how the Multiple to Maintainable Earnings method works in business valuation for shareholder disputes, including components, formulas, and how to choose the correct multiple.
Integrating Future Maintainable Earnings (FME) into your investment strategy is a sophisticated approach that hinges on the ability to accurately forecast a startup's revenue streams.
The earnings multiple approach, also known as the multiples valuation method, is a widely used technique for valuing companies. It involves comparing companies based on standardized financial metrics, such as the price-to-earnings (P/E) ratio, to estimate their value.
In this video Sara du Toit CA (SA) works through valuations. For all the lecture material, follow this link: https://drive.google.com/drive/folders/1lSGkMw72D...
The capitalisation of earnings method is a commonly used valuation methodology that involves determining a future maintainable earnings figure for a business and multiplying that figure by an appropriate capitalisation multiple.







