The Evo‑Valuations Dual Valuation Model
A business valuation is only as accurate as the method behind it. Most providers rely on a single method or a generic multiplier. We don’t.
The Evo‑Valuations Dual Valuation Model combines two complementary valuation methods:
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An EBITDA valuation
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A profit‑based valuation
This is not an automated calculator. It is a structured, analyst led, judgement based valuation, based on decades of experience.
Generic
multipliers
Can ignore business size, risk, and overall financial stability.
Profit‑only
valuations
Can be distorted by one‑off costs or unusual trading years.
EBITDA‑only
valuations
Can overvalue businesses with high debt or low cash flow.
The Two Components of the Dual Valuation Model
EBITDA Multiplier Valuation
What it measures:
Operational performance before financing and accounting adjustments.
Why it matters:
It shows how efficiently the business generates profit from its core operations.
What we analyse:
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EBITDA trends
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Sector‑specific multipliers
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Business size and stability
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Growth trajectory
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Risk profile
Profit‑Based Valuation
What it measures:
The sustainable, bottom‑line profitability of the business being valued.
Why it matters:
It reflects what the business actually earns after all expenses are accounted for.
What we analyse:
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Net profit
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Normalised profit (removing one‑offs)
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Year‑to‑year consistency
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Long‑term sustainability
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Profit history
How we determine
the multipliers
We start with a base multiplier based on the size of your business and the sector you operate in.
This baseline multipliers is calculated for each client individually based on our proprietary data, their accounts and our valuation experience.
Your dedicated analyst will forensically assess your accounts to understand:
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Revenue stability
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Margin consistency
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Cash flow strength
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Operational efficiency
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Debt exposure
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Working capital discipline
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Your analyst will then adjust the multipliers using professional judgement based on:
Longevity & trading history
Long‑established, stable businesses often justify stronger multipliers.
Owner‑dependence vs independence
If the business runs without the owner, value increases and vice versa
Consistency of growth
Predictable, repeatable growth supports higher multipliers. Volatility reduces them.
Sustainable profitability
We assess whether profits are genuine, repeatable, and supported by underlying performance.Once the adjusted multipliers are applied, we calculate your EBITDA‑based valuation, and
a profit‑based valuation.
At the end of this process we have the Dual Valuation and are ready for the final, analyst led, blending stage.
This is where Evo‑Valuations moves beyond generic calculators and one‑size‑fits‑all multipliers.
Every valuation we produce is powered by a human‑led, sector‑specific, performance‑driven adjustment process that no automated tool can replicate.
Here’s how our analysts build a valuation that reflects the real strength of your business:
The Final Stage: Analyst‑Led Blending of the Two Valuations
This is the part no calculator or generic multiplier can replicate. Once the two fully adjusted valuations are calculated, your valuation analyst will decide how much weight each should carry in the final valuation.
This isn’t a formula or a fixed ratio, it’s a professional judgement call based on the business’s underlying reality including:
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Which method is more reliable for this specific business
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Stability vs volatility in the accounts
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Cash flow strength and reinvestment patterns
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Sector norms (some sectors lean EBITDA, others profit)
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Owner‑dependence vs independence
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Growth consistency and sustainability
For example, a stable, 15 year old SME in the engineering sector might be weighted:
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40% profit valuation
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60% EBITDA valuation