Valutico provides a robust and adaptable solution for valuing small and medium-sized enterprises (SMEs), particularly those with annual revenues in the €2–10 million range. Our platform is widely used by professionals who frequently assess companies in this segment, offering tools and data that ensure both analytical rigor and flexibility.
Capital Markets-Based Starting Point
All valuation analyses within Valutico begin with a capital markets perspective. This involves selecting a group of listed comparable companies to extract key valuation inputs. This approach remains essential even for SME valuations, due to the need for specific parameters that are only observable in public markets—most notably the Beta factor, which is a required input for calculating the cost of equity via the Capital Asset Pricing Model (CAPM).
Qualitative Assessment Framework for SME Adjustments
Recognising that listed peers often differ materially from SMEs in terms of size, risk, and liquidity, Valutico incorporates the Qualitative Assessment module.
This framework helps bridge the gap between listed market data and private company characteristics by:
Guiding users through the discounting of trading multiples to account for SME-specific risk factors (e.g. lower liquidity, higher owner dependency, smaller market presence).
Supporting the estimation of a size premium or risk adjustment to the cost of equity, ensuring a more accurate reflection of an SME’s risk profile.
This structured approach ensures transparency and defensibility when adapting public market data to fit private company valuations.
Extensive SME Transaction Multiples Database
To complement market-based inputs, Valutico maintains a large and fast-growing database of private company transactions specifically curated for SMEs.
These multiples offer a real-world benchmark that can be used to:
Cross-check valuation results derived from trading comparables.
Provide empirical evidence for valuation assumptions.
Support triangulation in a multi-method valuation approach.
Our team is continuously integrating new databases based on client feedback to improve data coverage and regional relevance if you think one is missing, please reach out to our support team and we will look into it.
Venture Capital Method for Early-Stage and High-Growth SMEs
For SMEs in earlier stages of development or with high-growth potential, Valutico supports the Venture Capital Method (VCM).
This methodology is particularly useful for firms lacking historical earnings or those operating in emerging sectors. Key features of the VCM within Valutico include:
Use of anticipated exit multiples, sourced from listed comparables or precedent transactions.
Application of higher target internal rates of return (IRRs), reflecting the elevated risk and return expectations typical for venture-stage investments.
This method provides a structured way to value startups or growth companies where traditional income or market approaches may be insufficient.