Folks,
Herewith I have given below the link for Batch XVIII - Day 2 - Presentation made in Fast Track Webinar Series for IBBI Valuation Exam (For all three asset classes) on "Valuation Approaches and Methods"
Overview of Valuation - (4 Marks)
- Meaning of value: Difference between price and value; definition of Value
- Types of value: fair market value, fair value, intrinsic value, investment value, synergistic value, market value, special value
- Premise of valuation: going concern and liquidation
- Purpose of valuation: mergers and acquisitions, strategy evaluation, identification of under and overvalued assets, legal, financial reporting, scope of work
- Valuation standards
- Valuation process: understanding the business; planning and preparation; forecasting company performance; selecting the appropriate valuation model; converting forecast to valuation; applying analytical results in the form of recommendations; conclusions
- Valuation report and documentation: scope of the work performed, approach adopted, method applied, key inputs used, assumptions made, conclusion(s) of value and principal reasons for any conclusions reached, and date of report, date of valuation
- Importance of documentation, nature and purpose of documentation, timely preparation of documentation, documentation of valuation procedures performed, assembly of the final documentation, ownership of documentation
Valuation Approaches - (3 Marks)
- Cost approach: net asset value and book value, adjusted value, sum of the parts, replacement cost
- Market approach: quoted market price, price of recent investment and price of recent transaction, relative valuation, concept of multiples, selection of appropriate comparables; adjustments to multiple calculated in accordance to size, lines of operation and geographical areas of operation
- Income approach: discounted cash flow approach; terminal value; present value; adjusted present value approach; internal rate of return; cash flow analysis- end of year and mid of year conventions; earning capitalization method /yield method; concept of perpetual growth; concept of cost of capital and capitalization rate
- After investing substantial amount of time and Himalayan size of Efforts, Research & Pain; this material is brought out.
- Your acknowledgement (with your name, location & contact no) in this blog by few words will be an encouragement for this Hard Work
Link for GKR Notes / BGM used in Day 2 - FT18 - Webinar
Kindly post your comments, suggestions, queries & review of the webinar session below this post. Happy Reading | Please contact Venkatesh (75502 25226) for being part of FT18 - Valuation - WhatsApp group.
GKR
30th JAN 2024 | Tuesday