Value Estimator – sheng wei foo

This app allows users to estimate return on investment of a business within a year. It is based on initial capital, total monthly incomes, expenses and capital cost/discount/interest rates in a year.

The usual financial valuation is based on a fixed capital cost/discount/interest rate, which do not reflect the real world situation. This app allows users to change this rate on a monthly basis, hence there will be 12 values of such rates for any valuation. The user can define the correct rates for every month. Changes in these rates will be used when discounting to the present day. Hence the value of the business reflects the changes more accurately. User can copy monthly values to the rest of the months if it need be.

Compounding of these rates to the present day is done using Daily rate. This Daily rate is calculated using rate per year divided by 366, not 360 (most banks/financial institution uses 366 for accuracy, and is usually not expressively indicated). This Daily rate is then compounded every day to the present day, based on the monthly rate that the user has set.

After the calculation, as in the real world situation, the user can vary incomes, expenses and rates to check the impact these changes will have on the final value of the business. This gives the user a quick estimates of the business when situation changes. Hence the risk factors on the business value can be estimated.

In order to make it easier for users, this app does not require any text inputs. Unnecessary buttons are hidden/disabled. The user must click Save to enable the next steps.