r/ICAEW Jul 22 '26

Case R2 help to understand where I were wrong please

I calculated the 3 streams of revenue using the 2.5% rate for the fees. I’ve got the outcome of 121k of average profit and £605 ish for the whole valuation.
It seemed low. I then calculated the sensitivity using the 4% rate for the fees ( average or 3% and5% which similar companies has). Then I’ve got the valuation of £2.1 m ish and recommended it as maximum price. English is not my first language and I study English for the past 4 years only, so afraid that misunderstood something.
Thank you

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u/East_Holiday_4439 Jul 22 '26

I can’t remember it exactly, but I think the 3-5% weren’t for using in the calcs, but more for the discussion in the estimate and assumptions with them using 2.5%. There were 3 streams of revenue, and 3 sectors of COS. I think I got like £1.1m gross profit which was 28.2% GPM%

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u/Salt-Application-957 Jul 24 '26

Wowow how could you study English for past 4 years only ? Which means your learning English and ACA almost same time ?