BV Real Estate conduct supermarket valuations. The methods used are as follows.
We review the electronic point of sale (EPOS) weekly, monthly and annual reports, on analysis of the reports we estimate the earnings and calculate the valuation by applying the valuation methods and using multiples
- Discounted cashflow (DCF) we calculate future earnings in terms of present value
- Earnings Before Interest Tax Depreciation and amortisation (EBITDA) Multiple
- Investment method where we estimate rental potential and use investment multiple, we calculate the fuel litre margin and shop margins applying % yield.
- Comparable method compares other filling station sales
Many factors must be considered when valuing supermarket, a franchise agreement with symbol group in shop, has there been a recent fit out, location of supermarket, level of competition or threat of competition, potential for expansion and Earnings or EBITDA level.
BV Real Estate have a valuation tool specific to supermarkets that we seek clients to complete that gives us the information required to complete a valuation in detail report and to the Blue Book European Valuation Standards for a supermarket.
