The Estimated Value Index is a proprietary value index benchmarking tool that helps advisory firm owners understand how their business’s financial profile compares with similar firms in the FP Transitions database. Estimated Value Index's range from 1 to 100, with higher scores indicating stronger financial performance relative to comparable advisory businesses.
The Estimated Value Index is calculated using key information from your Firm Snapshot. It provides a quick, directional view of your firm’s market position and helps answer questions that revenue alone cannot, including how your business compares with peers, and what your revenue multiple range looks like today.
FPInsights®
Estimated Value Index
3-5 minutes to complete
See how you compare to your peers
Free to Participate
What is the Estimated Value Index?
How to Unlock Your Estimated Value Index
The Estimated Value Index is available at no cost to advisors with an FPInsights® account.
Create an account or login to the FPInsights® Dashboard
Complete the required information in your Firm Snapshot
View your Estimated Value Index on your FPInsights® dashboard.
Key Benefits and Insights
Gain an immediate value index benchmark of your business
Establish a baseline to track your progress over time
See how your financial profile compares with similar advisory firms
Discover where opportunities for value creation may exist
Next Steps
Review your Estimated Value Index with an FP Transitions consultant to better understand what it means for your business. Together, you can explore the factors influencing your Estimated Value Index, identify opportunities for growth, and determine practical next steps based on your goals.
Why Does the
Estimated Value Index Matter?
Most advisory firm owners know how much revenue their business generates. Far fewer know how their financial profile compares with similar firms, and what their revenue multiple range is.
The Estimated Value Index provides a quick, directional value index benchmark to help you understand where your business stands today and make more informed decisions about its future.
Frequently Asked Questions
Is the Estimated Value Index the same as a valuation?
No. The Estimated Value Index is a directional value index benchmark designed to provide immediate insight based on a limited set of financial information.
A full FP Valuation includes significantly more information and provides:
- An actual revenue multiple
- Your most probable sales price
- Benchmarking across dozens of revenue, profitability, and operational metrics
- Personalized recommendations
Think of the Estimated Value Index as a quick indicator that helps you understand where you stand, while a full valuation provides comprehensive analysis.
What is my Estimated Value Index based on?
Your Estimated Value Index comes from a proprietary calculation that analyzes data from thousands of diverse firms in the FP Transitions database.
FP Transitions works with firms around the country that utilize various custodians and broker-dealers, making the value index benchmarking more thorough.
What does my Estimated Value Index mean and how does it compare to other advisory firms?
Your Estimated Value Index can range from 1 to 100. A higher score indicates that your business’s financial profile is performing more strongly relative to comparable firms in FPTransitions' database.
Your Estimated Value Index is intended to serve as a directional value index benchmark. Reviewing your results with a consultant can provide additional context around your position.
What is the difference between an Estimated and Actual Value Index?
The Estimated Value Index is based on information from your Firm Snapshot. The Actual Value Index is based on a completed FP Valuation and provides a more comprehensive and precise view of your business’s financial position.
Why should I update my data?
Keeping your financial data up-to-date (the As of Date for Financials should be within the last 18 months to get a value index) will allow you to keep track of your Estimated Value Index relative to the industry. FP Transitions continuously gets new clients and data throughout the year.
What should I do after receiving my Estimated Value Index?
Review your Estimated Value Index with an FP Transitions consultant. They can help you understand the factors influencing your results, identify opportunities for growth, and determine practical next steps based on your goals.
Is my business information confidential?
Yes. The information you provide is kept confidential and used to calculate your Estimated Value Index and deliver personalized business insights. Your individual results are not shared with other advisory firms.