Create Valuation Scenario

Outcome of Comparables: Outcome value level
Selected Statistic: Statistical level of data.
Control Premium %: The discount premium for the selected statistics.

Table of Contents

Overview #

Most methods contain specific options which can be chosen when creating a sceneario

Options which are shared across most methods

Level of Profit: Level of Profit value which will be referenced for the valuation scenario.
Apply constant growth rate: If FME represents earnings to the current year, applying a constant growth rate will increase the FME amount for one year’s growth. Add the growth rate on the Multiple tab.
Reduce economic income by tax: If a post-tax capitalisation multiple is used, the economic income should be on a post-tax basis.
FME Precision: Defaults to 2 decimal places. Example: Enter 1 to round to a whole number or 100000 to round to the nearest $100,000.
Hide FME Equivalent column: By default the normalised profit & loss report will generate an equivalent Future Maintainable Earnings Column based on period weightings.

Cash Timing Choice: How is the cashflow discounted
Value to enterprise or equity: Outcome value of the Discounted Cash Flow
Level of Profit: Level of Profit value which will be referenced for the valuation scenario.
Notional Tax Rate:
Terminal Value Precision: Defaults to 2 decimal places. Example: Enter 1 to round to a whole number or 100000 to round to the nearest $100,000.