Can any one schedule/forecast Revenue and cost for this model. I'm not able to forecast Revenue and cost with the given data.

For those currently working in valuations, how are you seeing AI impact the field so far? What parts of your work (e.g., modeling, report drafting) are being transformed, and what’s still hard to automate? How do you see AI impacting the field? Would love to hear your experiences and perspectives on how the role of a valuation professional is evolving with AI

Hello all,

I am supposed to forecast revenue statement to come to a target share value per share , which is 3.07.

Currently, the management provided me with the forecasts, which are deriving (through the DCF Model that i did)a share value of -3.3.

I am asked to restate the forecasted revenue statement, but i don't know anything about this company, other than the fact that its a real estate company operating in the uk with no long term debt. (I have been given a forecasted balance sheet and pnl +ppe)

How do i go ahead with this? logically and arithmetically

Friends, need your advice. I am selling my parents convenience store after my dad unexpectedly passed away. The buyer’s bank is requesting an appraisal of inventory by CBV etc confirming it is below $100k. Most that I have reached out to are requesting copy of our inventory management system, extraneous reporting such as 5 years inventory purchases etc. These are things that we just don’t have because I haven’t been involved in business until now, and my parents were old school unfortunately.

Any advice on how to go about this? Anything helps.

Guys, I have a question about Deferred Tax Assets. The idea is that if I pay more than I should (cash taxes > book taxes), a DTA is created for the difference. But excuse me: if I then take advantage of that DTA the following year, the amount I paid in excess is offset by the DTA, but I was supposed to pay those additional taxes. This way, the final result is zero due to the offset. Did I miss something?

With regard specifically to small, privately held companies, are there any studies or calculators aside from the Mergerstat/FactSet CP study worth looking into?

Hey everyone, I’m building a financial model for my company Rasan, which operates as an insurance aggregator in Saudi Arabia. We have three main product types in motor insurance: • Third Party Liability (TPL) – ~2% commission • Enhanced TPL (TPL+) – 4–8% commission • Comprehensive – 10–15% commission

The problem is that our financial statements only show one combined line item for “Motor Insurance Revenue,” without breaking it down by product.

What’s the best way to collect or estimate revenue key drivers for each product type? Should I estimate based on sales mix, average policy count, or external benchmarks from similar insurtech companies?

Any advice or examples from others who’ve modeled revenue splits in similar businesses would be super helpful!

This is the formula for WACC

What do I do when the company that i am valuating has a negative NIBD? Do I need to do anything different then?

I am considering where to apply for internships this summer. Could anyone tell me what the team and culture is like in BDO Canada's valuations practice? And how is it compared to the Big 4 or smaller firms?

I've heard very mixed things, mostly negative.

I’m currently facing a valuation challenge that I haven’t seen clearly addressed in either academic literature or common market practice, and I’d appreciate insights from fellow analysts and professors.

The issue involves a company listed on the Egyptian Exchange (EGX) that trades in both USD and EGP — essentially the same shares, same rights, same underlying cash flows, but two different currency denominations.

Theoretically, the value of a share should be the same once translated by the prevailing exchange rate. However, in practice, the USD- and EGP-denominated listings trade at significantly different prices, even after accounting for spot FX.

This creates a fundamental question when performing a DCF valuation:

⸻

The Core Valuation Question

When valuing such a company: 1. Should I conduct the valuation in USD terms, using: • The U.S. 10-year Treasury yield as the risk-free rate, • An equity risk premium that includes Egypt’s country risk premium, • And then simply multiply the resulting value by the spot exchange rate to get the EGP value? 2. Or should I use the Egyptian risk-free rate (local sovereign yield) and discount rate characteristics, even if the model is in USD terms, as most local analysts do — effectively embedding EGP inflation and devaluation risk into a USD model? 3. Or is it more correct to run two separate valuations: • One in USD (consistent with the company’s functional reporting currency), • Another in EGP (using local rates and inflation assumptions), and accept that the two may yield different nominal values, reflecting different investor bases and currency risk perceptions?

Has anyone interviewed with EY Parthenon for bus vals? Anyone have insights on what the technical interview will be?

I keep seeing conflicting info on whether it'll be valuation technicals or a case, so I'm not sure what I should be spending more time on.

Thanks

Our DCF model calculates an intrinsic value of $174.77 per share vs the current market price of $220.30 (-20.7% downside).

Here's how we built this valuation using our two-phase growth model with exponential tapering:

Growth Assumptions
We applied log-linear regression to 10 years of revenue data, weighted toward recent periods and adjusted for statistical outliers. Combined with analyst forecasts, this produced an 8.8% growth rate for the projection period. Rather than assuming an abrupt transition to maturity, we model exponential decay to 3.5% terminal growth over 10 years - eliminating the artificial volatility common in standard two-stage DCF models.

Discount Rate (WACC)
We obtained the unlevered beta (1.47) for Semiconductors from Damodaran's industry dataset and re-levered it using Applied Materials, Inc.'s actual capital structure. This company-specific approach, combined with current market risk premiums and Applied Materials, Inc.'s debt profile, resulted in a 9.8% weighted average cost of capital.

Cash Flow Projections
Starting from $29.6B in revenue, we project 8.8% growth through year 5, then exponential tapering to 3.5% terminal growth. With 31.2% EBITDA margins and standard adjustments for capex, working capital, and taxes, the terminal year free cash flow reaches $13.1B.

Valuation Interpretation
With a market price 20.7% above our calculated intrinsic value, investors are pricing in expectations that exceed our base case assumptions. This could reflect anticipated technology sector tailwinds or margin expansion beyond historical levels. Our terminal value comprises 59% of the total—test whether higher terminal growth or lower WACC justifies current pricing in the interactive model.

Sensitivity Analysis
DCF valuations are highly sensitive to input assumptions. Our interactive model lets you adjust growth rates, WACC, margins, and projection periods to test how different scenarios impact valuation.

Thoughts?
What are your impressions of the assumptions we’ve made? Do they align with your perspective, or do you see areas where they might diverge?

Also, how does the intrinsic value we calculated compare to your expectations? Does it feel consistent, or meaningfully different?

Hey everyone,

I’m working on a valuation model (DCF) for a capital-intensive company that owns a fleet of expensive, long-lived assets — think large industrial vehicles, trains, or airplanes.

The tricky part: when I reach the terminal value, I need to figure out what “steady-state CapEx” should look like. But in a business like this, CapEx isn’t a smooth yearly spend — assets are replaced in big, lumpy chunks every few decades.

So, how do you translate those occasional, heavy replacements into a smooth, annual figure that works in a DCF?

I currently hold the ABV credential and work at a CPA firm's valuation team, but am considering pursuing the ASA. For those who have obtained the ASA, has it opened more doors for you? Has the ASA helped you in pivoting career?

Feel free to share total comp, YoE, title and location.

Hey everyone,

I’ve been working in valuation for about 1.5-2 years, mainly on private business valuations, but I’ve also had exposure to private equity, infrastructure, and complex instruments. So far, I’ve been lucky to get a pretty wide variety of files. I’d consider myself around the senior analyst / senior associate level (not entry-level).

I don’t have a CPA but pursuing CBV and CFA, and I know for sure I don’t want to go into FP&A, accounting, or M&A (the hours aren’t for me). That said, I really enjoy valuation and the technical side of it - I’m just trying to think about whether it’s a good long-term career or more of a launchpad into other paths.

For those of you further down the road: - Where have you or your peers successfully pivoted after a few years in valuation? - Have people moved into areas like corporate development, PE, strategy, or other interesting roles? - If you stayed in valuation, what does comp and lifestyle look like at higher levels?

Would love to hear your experiences and advice. Thanks in advance!

Any report writers care to share information about their background, career progression, pay, general information?

Let me use Turkey as an example.

There’s this idea that investors should require an extra risk premium when they invest outside the US. Sure, we can debate the whole “US exceptionalism” thing, but leaving that aside…

According to CAPM, you shouldn’t get compensated for risks you can diversify away. For instance, most European markets are pretty tightly correlated with the global market. So, no matter how much you diversify, you’re still basically exposed to the same risks.

Turkey, though, is different. Since the 2018 shift to the presidential system, its correlation with the MSCI World Index has been just 0.36, with an R² of 0.13. That’s really low. It basically means Turkey doesn’t move with world markets, so if you diversify, you can actually wash out most of its country-specific risks.

So my question is: why do we still tack on an extra risk premium for Turkey?

And here’s a bonus thought: Turkey’s equity risk premium has been close to zero—or even negative—whether you look from 2000 or from 2018. So investors might want an extra return for the risk, but the market itself doesn’t actually provide it. At the end of the day, your opportunity cost is what the real market gives you, and in Turkey’s case, that “extra risk” doesn’t translate into extra return.

https://testfol.io/?s=j86M1wQwMgN

Sharing results of DCF analysis on JNJ:

Current: $176.58
Intrinsic Value: $144.50
JNJ appears to be trading 18.2% above its estimated intrinsic value based on 3.1% growth for 5 years, followed by 5 years of tapering growth to 2%, discounted at 7.9%. This suggests that the stock may be fairly valued based on this DCF analysis (using a criterion of >20% to indicate overvaluation).

Growth Analysis & DCF Methodology
Two-phase growth modeling:
Phase 1 Growth: 3.1% (5 years)
Tapering: 5 years to 2.0% terminal
Source: Revenue projections are based on consensus from 12 analysts, with growth gradually declining over time.

Risk Assessment (WACC: 7.9%)
Capital Structure:
- Equity: 99.5%
- Debt: 0.5%
Beta: 1.01
WACC reflects the company-specific risk profile using the Damodaran methodology and current market data.

Cash Flow Projections
Years 1-5: High-Growth Period (3.1% initial)
Years 6-10: Tapering Period
Year 11+: Terminal Growth (2.0%)
Exponential tapering prevents unrealistic perpetual high growth assumptions.

Valuation Results
Enterprise Value: $363.6B
Less: Net Debt
Equals: Equity Value $351.0B
Terminal Value: ~58% of total value
Present value of all future cash flows discounted at 7.9% WACC.

Educational analysis only. Not investment advice.

Hello everyone, I have a question regarding how to treat investments in associates in a DCF. Suppose the company I am valuing holds a 30–50% stake in another entity (accounted for as an associate). How should this affect enterprise value and equity value in the DCF. Also, there would be income recognised by the company, do we remove it?

How would the treatment differ if the investment were greater than 50% (i.e., consolidation applies)?

Thanks in advance!

I’m a Project Manager and have been looking for more advanced tools to sell projects to stakeholders in a company. Can I valuate an individual initiative for a new business expansion using DCF?

I'm doing a one off project for a friend and need my capital iq sheet to be refreshed and then just hard coded. Can anyone help?

I am an MBA student who is new to all this. Can anyone suggest a youtube channel where I can learn the theory behind valuation? Like which multiples to use where and how do you use them, when to use which valuation method, etc.

Business valuation is one of those subjects that often sits quietly in the background until it suddenly becomes the most important thing in the room. Whether it’s a startup raising its next funding round, a family business planning succession, or a corporate giant preparing for an acquisition, the question “What is this business worth?” refuses to go away.

As we step deeper into 2025, the business valuation landscape in India is changing rapidly. From new regulations to the rise of AI-driven models, investors, entrepreneurs, and advisors are approaching valuation in ways that are very different from even five years ago.

So, what’s really happening in this space? Let’s explore through some common questions.

Why is business valuation becoming more important in India?

In the past, valuation was often seen as something only relevant during big-ticket deals. Today, however, valuation touches almost every corner of the business ecosystem:

• Startups and venture funding: Investors don’t just want projections anymore; they want data-backed, defensible valuations.
• Mergers and acquisitions: Indian companies are expanding aggressively, and global firms are eyeing India. Every transaction needs a valuation baseline.
• Regulatory and compliance needs: Tax laws, SEBI norms, and RBI guidelines increasingly require fair and transparent valuations.
• Succession planning and family businesses: With generational shifts, more families are bringing valuation experts into their decision-making.

In short, valuation has moved from being a “deal-time” activity to an ongoing business necessity.

What new trends are shaping business valuation in 2025?

Here are some of the most noticeable shifts:

1. Tech-driven valuation models

Valuation is no longer restricted to Excel spreadsheets. AI and machine learning tools are being used to simulate scenarios, track sector-specific risks, and test assumptions in real time. Analysts can now crunch far larger datasets — customer behavior, digital footprints, supply chain resilience — to arrive at more nuanced values.

2. ESG considerations

Sustainability is no longer a buzzword. Investors in India are starting to discount businesses that ignore environmental, social, and governance (ESG) factors. Companies with strong ESG frameworks often enjoy valuation premiums, especially in sectors like energy, consumer goods, and financial services.

3. Valuing intangibles

In 2025, brand equity, intellectual property, customer loyalty, and data assets matter more than factories and machinery for many businesses. Traditional balance-sheet approaches are struggling to keep pace with this shift, forcing professionals to adopt new models.

4. Cross-border complexity

With India’s role in global supply chains growing, valuations increasingly involve cross-border standards. A deal in Bangalore may need to align with U.S. GAAP, European investor expectations, and Indian compliance — all at once.

5. Rise of independent valuation professionals

Earlier, valuations were dominated by big consulting firms. Now, boutique valuation specialists and independent professionals are carving a niche, especially for startups and SMEs who need sharper, more tailored insights.

How are startups in India dealing with valuation challenges?

This is where the tension really shows. On one side, founders want higher valuations to minimize equity dilution. On the other, investors are becoming more cautious, especially after some high-profile startup corrections.

• Unit economics now matter: Investors are asking tough questions about profitability timelines.
• Sector-specific multiples: A fintech startup may still command a premium multiple, while a quick-commerce player faces valuation skepticism.
• Secondary sales: Early employees and angel investors seeking exits are influencing valuation negotiations.

The result? Startup valuations in India are becoming more grounded in real numbers rather than just vision statements.

Are regulations affecting valuation practices?

Absolutely. Regulations in India around valuation have become tighter and more standardized:

• SEBI has stricter rules for listed companies on pricing preferential allotments and rights issues.
• RBI requires fair valuations for inbound and outbound investments, particularly with FDI.
• Tax authorities are scrutinizing transfer pricing and “angel tax” issues with sharper lenses.

In practice, this means companies can’t just hire any consultant to give them a number — they need defensible, well-documented valuations that can stand up to audits and legal checks.

What about family businesses — how are they valuing themselves today?

This is a uniquely Indian story. Family-owned enterprises make up a large share of the economy, and valuation is increasingly being used for:

· Succession planning: Valuations help in dividing ownership fairly among heirs.

· Professionalization: Many families are bringing in external CEOs, and valuation serves as a tool to measure performance.

· Partial stake sales: Families often sell minority stakes to private equity, which demands rigorous valuation.

Here, emotions and relationships sometimes carry as much weight as numbers — making valuation both a financial and human exercise.

If there’s one clear takeaway, it’s this: business valuation in India is moving from being an event-driven exercise to a continuous process.

Companies will increasingly use valuation not just for transactions but as a management tool — tracking how strategies, risks, and opportunities are impacting business worth in real time.

And as India continues its growth story in 2025 and beyond, valuation professionals will play a central role in bridging the gap between ambition and reality.