Unified standard: Pre-tax cash flow is a commonly used index to evaluate enterprise value, which is widely used in the evaluation of different industries and different enterprise types. By using pre-tax cash flow, we can maintain consistency when comparing the values of different enterprises and industries.
Consider all shareholders: Pre-tax cash flow considers the rights and interests of all shareholders, including shareholders, creditors and concessionaires. This method can reflect the value of the enterprise more comprehensively and provide reference for all parties.
Tax difference and individual situation: the calculation of after-tax cash flow involves individual tax situation, tax policy and tax rate. Different enterprises and individuals may have different tax payment situations. Using pre-tax cash flow can eliminate these differences and make the evaluation results more universal.
Although pre-tax cash flow is usually used in franchise evaluation, it may also be considered in certain circumstances. If the tax impact of franchising has an important impact on the evaluation results, or the calculation of after-tax cash flow is clearly stipulated in the franchise contract, then the after-tax cash flow can be used to evaluate the value of franchising.
To sum up, whether to choose pre-tax or after-tax cash flow for franchise evaluation should be decided according to the specific situation and the purpose of evaluation, so as to ensure the accuracy and rationality of the evaluation results. In the process of evaluation, it is recommended to seek professional financial and tax advice to ensure that the appropriate cash flow calculation method is selected. Consultation and contact of evaluation problems: praise the third-party evaluation consultation.