Company valuation service is a service that involves estimating the fair value of a company or its assets, liabilities, or equity for various purposes, such as financial reporting, taxation, mergers and acquisitions, litigation, etc. By valuing a company, one can determine if the company is overvalued or undervalued by the market, and make informed decisions about buying, selling, or investing in the company. Valuing a company can also help with strategic planning, capital financing, and risk management.
Some of the common methods that an auditing firm can use to value a company are:
- Discounted cash flow (DCF): This method involves projecting the future cash flows of the company and discounting them to the present value using an appropriate discount rate. The sum of the present values of the cash flows is the value of the company.
- Market multiples: This method involves comparing the company to similar companies in the same industry or market and applying their valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), price-to-book (P/B), etc., to the company’s financial metrics. The product of the multiple and the metric is the value of the company.
- Asset-based: This method involves adding up the fair values of all the assets and subtracting the fair values of all the liabilities of the company. The difference is the value of the company’s equity.
- Dividend discount model (DDM): This method involves projecting the future dividends of the company and discounting them to the present value using an appropriate discount rate. The sum of the present values of the dividends is the value of the company’s equity.
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Company valuation is a work that requires high expertise and a lot of practical experience to most closely reflect the value of the company being valued. We own a strong team with good skills and much experienced experts in performing this service. SCS Global is a leading provider of company valuation services with high-quality in Vietnam.
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