Evaluating what carpet business is worth?

  Padman told me people generally might pay about 50% of profits for a year when buying a business from somone.  He said that was about standard rule of thumb..

So is paying half of a person's profits.. thats at the high end of retail right?

so maybe about 30 to 40% of that would be say a fair price?>

Does anybody know some general things about buying and selling carpet businesses and how a person can figure a value.. ?

mike