Our Methodology
Our Methodology
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Comprehensive process to value a business through systematic analysis and methodologies
Determine the Purpose of Valuation
Define the Standard / bases of Value
Select the Premise of Value
Carry Out Historical Analysis
Carry Out Environmental Scan
Select Appropriate Valuation Approaches
Select Appropriate Method
Calculate Value
Reconciliation and Reasonableness Check
Value Conclusion
Diverse valuation approaches to credibly assess the worth of assets and informed strategic decision-making
Income Approach
Value is estimated
based upon the
present value of some
measure of cash flow,
including dividends,
operating cash flow,
and free cash flow. It
determines the value
of the business based
on its ability to
generate economic
benefits to the owners
by calculation of
discounted cash flows.
Market Approach
The value of a business is determined by comparing the company’s accounting ratios with another company’s of the similar nature. This approach is used, where the value of a business is estimated based upon its current price relative to its variables considered to be significant to valuation.
Asset Based (Cost) Approach
It determines the
value of business on
the basis of Net
Assets of the
Company, i.e., total
assets less liabilities.
Asset accumulation
method and
capitalized excess
earning method are
used to determine
the value of
business.
Accurate valuation of options to inform strategic decision-making and optimize financial outcomes
Binomial Method
The Binomial Method values options using a “Binomial Tree” that depicts potential price paths for the underlying asset. Based on the “no arbitrage” principle, it evaluates price movements at each node and discounts outcomes back to present value, providing a fair valuation of the option.
Black-Scholes-Merton Option Pricing Model
The Black-Scholes-Merton (BSM) model offers a closed-form solution for pricing European-style options, assuming stock prices follow a lognormal distribution. Key variables include stock price, exercise price, risk-free rate, time to expiration, and volatility. The BSM model is widely used for its reliability in option pricing.
Monte Carlo Simulation (MCS)
Monte Carlo Simulation (MCS) assesses risk by simulating multiple price paths for the underlying asset through random number generation. This method averages the results to estimate the expected value of the option, making it particularly useful for complex options with nonlinear payoffs.
We provide customized valuation solutions designed to meet the unique needs of every client—whether for compliance, transactions, investments, or strategic growth.
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- ayushgoel@ascendvaluations.com
- +91-9811667466
