Public house valuation: worked examples

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The worked examples here illustrate, in outline form, the application of the principles discussed earlier. Ground rental calculation Estimated turnover of out-of-town food-led house £2,000,000 Estimated EBITDA 30%   £ 600,000 Value of completed unit 7.5 YP   £4,500,000 (2.25 x turnover) Deferred by one year to allow construction x 90%   £4,050,000 Cost of construction £3,000,000 Available for site (capital value) £1,050,000 Site value at 11% return ÷9 say £116,666 p.a. (5.83%...