✦ VFD Mastery delivers 28 hours of verifiable CPD – mapped to ICAEW, ACCA & CIMA requirements.      ✦ CPD budgets at work: compliance, reporting, forecasting & exit planning – all covered in Mastery.      ✦ Turn financial data into growth decisions with VFD tools & training.    ✦ Helping businesses improve cash, profits & exit readiness.    ✦ Forecasting, reporting, valuation – practical tools to run and grow your business

How Can We Help?

Valuation: Construction Business

You are here:

The weightings given to valuation methods can differ significantly across industries due to the unique financial structures, operational characteristics, and market dynamics of each sector.

Here’s a generalised guidance on the weightings for a construction business:

Valuation MethodWeightingRationale
Return on Investment (ROI) ValuationMedium (15%)Project-based nature can make ROI a relevant metric.
EBITDA MultiplierHigh (25%)Reflects operational profitability in an industry with significant capital expenditures.
Simple Cash PaybackMedium (15%)Given the project timelines, understanding payback can be crucial.
Revenue Multiplier ValuationMedium (15%)Revenue can be a primary measure of growth and success in construction.
Balance Sheet ValuationHigh (20%)Tangible assets (equipment, land, etc.) play a significant role in this sector.
Discounted Cashflow Valuation (DCF)Low (5%)Forecasting long-term is challenging due to the project-based nature of work.
Cash Flow ValuationLow (5%)The cyclical nature and project timelines can affect consistent cash flows.
Table of Contents