PBEM (PARIS BATIGNOLLES EMERGENCE) : revenue, balance sheet and financial ratios

In 2024, PBEM (PARIS BATIGNOLLES EMERGENCE) achieves revenue of 2.9 M€. Over the period 2018-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +30.2%. Slight decline of -5% vs 2023. After deducting consumption (0 €), gross margin stands at 2.9 M€, i.e. a rate of 100%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 1.8 M€, representing 62.6% of revenue. Positive scissor effect: EBITDA margin improves by +3.2 pts, sign of improved operational efficiency. This high EBITDA margin provides strong self-financing capacity and resilience to uncertainties. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 32 k€, i.e. 1.1% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 137%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 42%. This high autonomy means the company finances most of its assets through equity, a sign of strength. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 59.3 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 22.9% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment. This high level provides strong self-financing capacity.

The liquidity ratio (= Current assets / Current liabilities) stands at 167.12. Concretely, the company has €2 of liquid assets for every €1 of short-term debt: no cash risk within 12 months. The interest coverage ratio (= EBIT / Interest expenses) is 64.8x. Operating income very largely covers interest expenses: high safety margin.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 9 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 86 days. Excellent situation: suppliers finance 77 days of the operating cycle (retail model). Overall, WCR represents 38 days of revenue, i.e. 303 k€ to permanently finance.

Based on 169 transactions of similar company sales in 2024, the value of PBEM (PARIS BATIGNOLLES EMERGENCE) is estimated at 5 737 617 € (range 1 601 402€ - 10 297 355€). With an EBITDA of 1 787 241€, the sector multiple of 5.6x is applied. The price/revenue ratio is 0.81x (in line with sector norms). This multiples method compares the actual sale price of similar companies to their financial indicators (Revenue, EBITDA, Net Income). It provides a market-based indicative estimate.