How the VPItm is calculated

Economic Insights

Quickly identify valuations based on key economic data including interest rates, CPI, GDP, Forex and employment.

Capital Markets Data

Leverage real time market based metrics from local stock markets and commonly followed equity indices.

Valuation Data

Captures over 225,000 data points to calculate specific company risk, beta, risk weightings and business valuation.

The Capitaliz VPITM is based on 225,000 data points over twelve years of economic data where we are able to track the key metrics that drive valuations. This data allows us to project potential business value based upon implementing the recommendations from our Capitaliz Business Insights Report.

The Index includes economic, industry, and business-based risk scores to assist advisors in calculating appropriate multiples. It’s used in reporting to identify profit gap, benchmarking, exit readiness and attractiveness, helping to determine the value potential in the business as the economic landscape changes. The data collated in our proprietary VPITM forms the foundation for delivering appropriate advice and prioritising actions that will most affect the business valuation.

VPITM REPORTS

Available Reports

Q2/2022 Report

United States

1.63%

6522.97

Report Overview

The US VPI has continued steady growth. High fluctuations in general economic indicators are largely being offset by more robust business operations. Growth levels and asset prices are  stabilizing despite the volatility.

Understanding your value potential

We estimate the combined value of private businesses in the US to be $24.3 Trillion. We also estimate that with some forward planning and preparation, this could be nearer to $28 Trillion, a total Value Potential Gap of about $3.7 Trillion. Further, some 59.5% of this Value Gap resides in the 10-249 employee category, with the smaller businesses on average leaving about $900,000 and the medium businesses about $1.3M on the table each.

Q2/2022 Report

Australia

0.35%

803.19

Report Overview

The Australia VPI has remained stable. Strong GDP growth and higher inflation have driven price growth. This has however been offset by higher cost of capital.

Understanding your value potential

As calculated by the Capitaliz VPI, the total value of Australian privately owned businesses is $1.437 trillion (average value is $605,079) and the value potential is currently $432 billion (or
$182,000 per business), or 30%. The value potential represents a large opportunity for Australian business owners to improve the value of their asset.

Q2/2022 Report

United Kingdom

33.36%

948.22

Report Overview

The UK VPI has improved substantially, reversing the deterioration felt in the previous quarter. This is almost entirely accounted for by above trend inflation numbers, driving up interest rates and impacting valuations. These fluctuations are expected to level out in the medium term once rate hikes manifest themselves in slower consumer demand.

Understanding your value potential

We estimate the combined value of private businesses in the UK to be £2.9 Trillion. We also estimate that with some forward planning and preparation, this could be nearer to £3.3 Trillion, a total Value Potential Gap of about £432 Billion. Further, some 56% of this Value Gap resides in the 10-249 employee category, with the smaller businesses on average leaving about £540,000 and the medium businesses about £3.6M on the table each.