eBook
Introduction to Valuation in Investment Banking
What is Valuation
Valuation is the process of determining the present value of a company, investment, or asset. It's a critical skill in investment banking, used for mergers and acquisitions, capital financing, and strategic planning. Stay tuned to learn more about the different valuation techniques!
Key Valuation Techniques
Valuation Methods : Investment bankers use various methods to value companies and assets, including:
What is DCF Analysis
Understanding DCF Analysis
DCF Analysis is a fundamental valuation method that estimates the value of an investment based on its expected future cash flows. By discounting these cash flows to their present value, investors can determine the intrinsic value of an asset. This method is particularly useful for long-term investments.
Comparable Company Analysis (CCA)
What is Comparable Company Analysis?
CCA involves comparing the target company with similar companies in the same industry. By analyzing key financial metrics, such as P/E ratios and EBITDA multiples, investors can gauge the relative value of the target company. This method is widely used for its simplicity and effectiveness.
Precedent Transaction Analysis (PTA)
Exploring Precedent Transaction Analysis
PTA involves analyzing past transactions of similar companies to determine the value of the target company. By examining the multiples paid in these transactions, investors can estimate a fair value for the target. This method is particularly useful in M&A scenarios.
How Evalueserve Can Help with Valuation
Evalueserve's Expertise in Valuation
At Evalueserve, we offer advanced valuation services to help you make informed investment decisions. Our solutions include:
Price Monitoring
- Monitoring of all delisting and new listing of securities.
- Identity securities that are trading with zero volume and evidence price backups
- Missing prices check is carried out for all instruments
- Real time support for tracking pricing for bonds and loans
Research
- Carry out research on price movements and provide backup for the price movement
- Updating research comments for all price exceptions & maintaining the price log
- Perform price variance analysis
Stale Pricing Report
- Identity and report the list of securities that have prices stale for more than 3 days and are not trading with volume.
Pricing Back Up
- Saving back ups for the Corporate action(CA)events from IC for instruments
- Validate and provide ICE backups for securities that have stale price for more than 3 days
Pricing Uploads
- Data import exercise into pricing applications.
- Daily pricing review, equity pricing
Liaise with Vendors Client Teams
- Coordinate with external vendors for identification and resolution of data discrepancies and other issues
- Coordinate with internal Client team for sourcing required data information for updating relevant data system/report
Client Servicing
- Reporting for internal stakeholders
- Creation and maintenance of databases
