Berkus Method Calcualtor
MediaThe Berkus method, invented by the angel investor Dave Berkus, is a company valuation method mainly used for startups in their early stages.
The valuation of an early-stage company can not be done using the standard valuation method. In most cases, the company has no products, and as a result - no sales. Even if it does have a product - it is probably only the minimum viable product (MVP). Minimum Viable Product or MVP is the most basic version of the product which the company wants to launch in the market.
Berkus Valuation Method
Alternative valuation approaches were adopted by practitioners - the Scorecard Valuation Method, the Risk Factor Summation Method and the Berkus Valuation Method. In the Equitest Valuation platform, we found that the Berkus method is superior and more robust among the two. We, therefore, included the Berkus Method calculator in our business valuation software.
The value of the company, according to Berkus valuation method, is calculated by a detailed assessment of five critical success factors: (1) Basic value, (2) Technology, (3) Execution, (4) Strategic relationships in its core market, and (5) Production and consequent sales.
InfInfographics: The five key success factors according to Berkus Method
Equitest, in a valuation platform and business valuation software, adopted several valuation methods - the Discounted Cash Flow (DCF), Berkus Method, Book Value Multiple, Revenue Multiple, Earning Multiple, and Asset Based Valuation. You are welcome to try our business valuation software for free.
Take a look at our online valuation tool and what it offers today.