How to value a future profit stream for investment today. : LUSENET : What keeps you up at night? : One Thread

I operate a small consultancy business, with profits, operating over the past 2 years. Wish now to extend it, adding people and technology. Have worked out a reasonable 5-year projection, showing revenues in Year 5 as $1.5 million with profits from Year 2 onwards, and cumulative cash flow at end Year 5 as $1.5 million. Need investment to make it happen. How could this revenue / profit stream be used to value the company today?

-- Gautam Sen Gupta (, November 09, 2000


The best advice I received regarding accounting is to talk to a qualified accountant because book-keepers are not necessarily accountants and the one thing I know I will never be is a qualified accountant. I don't know if these particular links will be of help but take a look and see if this is of interest to you.

Fast Company recently provided some investment links that may contain pertinent information you may be looking for at


"To be or not to be that is the question" A quote by Willy Shakes. M Profile at: p=9738 Mantra of M. "Life is about Private Relations not Public Relations"

-- Mark Zorro (, November 11, 2000.

Moderation questions? read the FAQ