Manufacturing - For a business of this quality and have taken all of the aforementioned factors, overshadowed by a weakening economy as they are, into consideration, a price/earnings ratio of 2.5 x will represent fair value to a serious buyer. Therefore, considering Net Profit after tax of R2.747.529 x 2.5 = R6.868.823, or R6.9m. This amount includes all office and factory equipment, tooling and vehicles, but excludes stock of steel and other metal, and work in progress. It also assumes that the business will be debt-free and all of its assets unencumbered on the date when it is sold to a buyer.