Financial Asset Valuation

Q: How are shares and securities valued?

Approaches include income-based methods such as discounted cash flow, market-based methods using comparables, and asset-based methods, applied according to the instrument and purpose, with appropriate techniques for instruments having special features.

Q: What do you need to value financial assets?

Typically financial statements, projections where relevant, details of the instrument and its terms, the capital structure, and the valuation purpose, with which we apply the appropriate methodology to arrive at an accurate, well-supported valuation.

Independent Valuation of Shares, Securities, and Financial Instruments

Financial assets — shares, securities, and a range of financial instruments — need to be valued for numerous purposes, from issuing or transferring shares and raising capital to mergers, ESOPs, regulatory filings, and financial reporting. Valuing financial assets calls for the right methodology, sound assumptions, and, for many statutory purposes, a Registered Valuer in the securities or financial assets class. An accurate, defensible valuation protects your transaction and satisfies regulators and stakeholders.

Our financial asset valuation services provide independent, well-supported valuations of shares, securities, and financial instruments, delivered by qualified professionals and, where required, a Registered Valuer of the appropriate class. We match the approach and standard to your purpose. This is one of the asset classes under our registered valuer services and valuation services, and it relates closely to our intangible asset valuation work.

Our Financial Asset Valuation Services

Share Valuation

Valuation of equity shares for issuances, transfers, and transactions.

Securities Valuation

Valuation of preference shares, debentures, and other securities.

Instrument Valuation

Valuation of convertible and other financial instruments.

Transaction Support

Valuations for fundraising, M&A, and investment transactions.

Regulatory Valuation

Valuations to meet company law and other regulatory requirements.

Reporting Valuation

Valuations for financial reporting and accounting purposes.

Benefits of Professional Financial Asset Valuation

Independent, defensible valuations of shares and securities
Appropriate methodology and sound assumptions
Registered Valuer reports where required
Support for transactions, compliance, and reporting
Credibility with regulators, investors, and counterparties
Protection for the transaction the valuation supports

Frequently Asked Questions

What are financial assets in the context of valuation?

Financial assets include shares and other securities such as preference shares and debentures, as well as various financial instruments. In the Registered Valuer framework, these fall under the securities or financial assets class. Valuing them requires appropriate financial methods and, for many statutory purposes, a Registered Valuer of that class.

Why would I need a financial asset valuation?

Common reasons include issuing or transferring shares, raising capital, mergers and acquisitions, ESOPs, regulatory filings, and financial reporting. In many of these situations an independent valuation is required or advisable, and for certain statutory purposes it must be performed by a Registered Valuer of the securities or financial assets class.

How are shares and securities valued?

Valuation approaches include income-based methods such as discounted cash flow, market-based methods using comparable companies or transactions, and asset-based methods, applied according to the nature of the instrument and the purpose. For instruments with special features, appropriate techniques are used to reflect those features in the value.

Is a Registered Valuer needed for share valuation?

For a number of statutory purposes under company law and other regulations, share and securities valuations must be carried out by a Registered Valuer of the securities or financial assets class. Where your purpose requires this, we ensure the valuation is performed accordingly so it meets the requirement and is accepted.

What do you need to value financial assets?

We typically need financial statements, projections where relevant, details of the instrument and its terms, the capital structure, and information about the purpose of the valuation. With this, we apply the appropriate methodology to arrive at an accurate, well-supported valuation of the financial assets.

Value Your Shares and Securities Right

Independent financial asset valuation for transactions, compliance, and reporting.