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Translated into Portuguese, Valuation means ”company valuation”. This service is responsible for estimating the real value of your business. But you must be wondering what this type of service will add to the success of your company, right? Check out our full content about Valuation and how it can positively impact your business.
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– After all, what is Valuation?
It is a method that involves knowing how much a company is worth in the market and what is the high estimate for the investment, in addition to the safety margin. With this information, analysts and investors can feel more confident to make a new purchase or sale of assets.
There are two main methods that are used to prepare the Valuation:
1. Discounted Cash Flow
It is an approach with profit projections applying the risk discount associated with the investment. It is used to determine the current value of a company, asset or project based on the money it can generate in the future.
2. Multiple of comparable transactions
In this method, the Valuation is done through the relative comparison of indicators of companies in a given sector. In addition, it is possible to alert the buyer about the value of a certain type of company to investors based on recent trends.
– What are the main objectives of Valuation?
- Recognizes the particularities that add value to an organization;
- Makes it possible to know the amount of money needed to invest in a company;
- Understands how the organization has grown over the years;
- Understands what can be improved and what makes that organization worth less than others;
- Negotiates the fairest value of the company with the shareholder;
- It considers the market value, in cases of purchase or sale of shares.
Valuation works with estimates. If something happens outside of what was predicted, the result may be different from what was previously calculated. Therefore, the company responsible for evaluating the company must take into account subjective factors. In addition, the results may vary according to the numbers and methods used.
Also check out: Find out how your company can reduce tax payments
Conmax Corporate Solutions shows you the exact value of your company with Valuation!
Based in Fortaleza and São Paulo, but operating directly in several states of the country, we are sure that we are adding value to new customers, helping them through corporate accounting to develop their business even more. We have a team of more than 25 professionals with higher education, continuously trained and specialized in several areas.
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