· Why Valuation Services are
· Three Types of Approaches
used by us
· Our Services
Valuation is a process in which the intrinsic and fair value of
a(n) asset, company or project is determined by making use of latest financial
techniques and theories and on the basis of comparing the same with similar
assets or based on current value of variables on which the future return on the
asset is dependent. The general principle in valuation is taking into
consideration of industrial environments, as well as economic entities. The
skill and art of valuation in selection of the proper valuation model lie with
understanding of how to make use of such model.
Why Valuation Services are needed?
Major and block transactions and transferences
of shares of companies and projects
2) Pledge a company’s shares as collateral for
taking out banking credit facilities
Enforce supervising and legal institutions to
determine the company’s worth
Understand actual value of a share for
transaction purpose and administration of an active investment portfolio
Offer initial shares
7) Merger and acquisition
8) Evaluate wealth and create value
Three Types of Valuation Approaches used by us
Income Approach: This is also called discounted
cash flows, which is based on cash flows discount models. This approach is
applied to determine the current value of future cash flows attributed to an
asset, company or project. Some of its methods include: “Dividend Discount
Method”, “Operating Cash Flow Method” and “Free Cash Flow Method”.
Market Approach: In this approach, a company’s
value is estimated by comparing its value with the value of similar companies
in the market. The concept of barometer is used for valuation in this approach.
The industry barometer for each ratio and indictor represents the criterion of
such indicator in calculations, and the company’s value is determined by
comparing its income and cash flows with those of other similar companies.
Asset-Based Approach: In this approach, the
intrinsic value of a company is determined by current value of the company’s
assets minus current value of liabilities and equities of holder of privileged
shares, or by calculating the replacement cost of the company’s assets minus their
physical and economic depreciation. This approach is best suited for valuation
of companies with no intangible and off-balance-sheet assets and rather with
current assets and liabilities.
Being supported by our experienced and skilled valuation
specialists, we are ready to carry out fair valuation and determining the
prices of types of securities and projects by using the most modern and
appropriate models of valuation.
1) The skill and art of valuation in selection of
proper valuation model, together with understanding of how to make use of such
2) Valuation of types of projects and companies
according to the client’s request.
3) Valuation of securities in block transactions of
companies and projects.
4) Valuation of types of securities for
transference of ownership, initial offering of shares, merger, acquisition and spinoff.