Need help valuing this business.
A cafe business with 60 locations and total annual revenue of Rs 150 crores. Net profit is Rs 3 crore.
Assuming all stores are on lease/rent.
How much valuation does the business get?
Available information so far:
- Sales have increased at CAGR of 20% over last 4 year.
- Number of stores have increased at the rate of 3 stores p.annum.
- Biggest expense is Labor followed by raw material and rent.
- No funding done so far.
- There is debt of around Rs 20 crores
Do we value this business via sales multiple or profitability metrics ?
Any help would be very helpful.
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