Tuesday, May 23, 2006

miindia.com Message Boards

miindia.com Message Boards: " me
40.74
Re: Gas Station Help
Posted: 5/23/2006 2:11:02 PM
Get the gross sales figure.
Get the expenses except finance charges (eg mortgage).
CAP value will be (gross-expense)/asking price.
CAP if less than 6% is bad. Anything above 10% is very good.
That is one calculation.
Then you have GRM which is either 6 times or 4 times the gross annual sales.
In this case if you are buying then lesser is better.
Anything less than 3.5 is very good and more than 8 is very bad."

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