Our Methodology
Partner with us for expert financial solutions tailored to your goals. With a proven track record and global insights, we deliver exceptional results with integrity and precision
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 accurately assess the worth of assets and inform 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.
Valuation of intangible assets that enhances financial reporting and supports strategic decision-making
A
Market Approach
Intangible assets are
typically transferred only as
a part of selling a business
or in a licensing
arrangement. Observable
market data is therefore
limited. Hence, is less
frequently used. Method in
market approach includes
1. Sales comparison method
2. Market multiples method
1. Sales comparison method
2. Market multiples method
B
Cost Approach
Cost approach is less
frequently accepted than
income approach because
cost measures are
considered less
representative of future
economic benefits than
anticipated income
streams. Method includes
1. Reproduction cost method
2. Replacement cost method
1. Reproduction cost method
2. Replacement cost method
C
Income Approach
Income approach (most widely used approach) provide a value based on cash flows an
individual intangible asset is expected to generate. These income streams are discounted and
adjusted for taxes. Method includes
1. Relief from royalty method
2. With or without method
3. Multi period excess earning method (MEEM)
1. Relief from royalty method
2. With or without method
3. Multi period excess earning method (MEEM)
