Determining the fair value of a company is a critical aspect of financial analysis, especially for listed entities. Accurate business valuation methods ensure informed decision-making for stakeholders, whether for M&A valuation, regulatory compliance, or strategic planning...

Valuation is a cornerstone in maintaining transparency, fairness, and compliance in financial transactions, particularly those governed by SEBI regulations. Registered Valuers play a critical role in conducting valuations for listed companies to ensure compliance with regulato...

Mandatory Valuation Under Ind AS – Key Standards & Compliance Mandatory valuation under Indian Accounting Standards (Ind AS) plays a critical role in ensuring fair value measurement, financial transparency, and compliance with regulatory norms. Valuation under Ind AS is gu...

Appointing a skilled auditor is essential for ensuring financial transparency, regulatory compliance, and building stakeholder trust. The role of a good auditor goes beyond preparing audit reports—they bring insights that can drive operational efficiency, mitigate risks, and e...

Valuation exercises often involve complexities that can lead to errors if not handled diligently. Common mistakes in valuations, as highlighted in ICAI guidelines and industry practices, include 1. Over-reliance on Subjective Assumptions Valuers may make assumptions about grow...

When transferring a business or a significant part of it, known as a “slump sale,” it’s essential to understand the implications of the newly prescribed valuation rules by the Central Board of Direct Taxes (CBDT). These rules significantly impact the calculation of capital gai...

In today’s dynamic business landscape, understanding startup valuation is crucial for entrepreneurs seeking funding or planning exits. According to recent statistics from PitchBook, the global venture capital investment reached a record $1.3 trillion in 2023, emphasising the s...

Understanding the Option Pricing Method (OPM) The option pricing method (OPM) is a widely used approach for allocating equity value to various securities within the intricate capital structures of privately held companies. This method is particularly useful when active markets...

To address the inconsistency and potential manipulation in the valuation of investment portfolios of Alternative Investment Funds (AIFs), SEBI has implemented amendments to standardize valuation techniques. Previously, varying methodologies allowed AIFs to present a broad rang...

Financial models are essential tools for businesses. Every financial decision, whether it involves budgeting or investment, relies on these models. If you’re interested in understanding different types of financial models, their uses, and their relevance, this article will gui...

An option provides the holder with the right to buy or sell a specified quantity of an underlying asset at a fixed price (called a strike price or an exercise price) at or before the expiration date of the option. Employee stock option is one of the important options very know...

The first thing to keep in mind regarding the valuation of a business is that there are many different methodologies for valuation. Some methods may weigh income more heavily as a factor, while others may look more closely at “market value” based on other similar assets that h...

Financial projections in startup valuation play a significant role in company valuation by providing a forward-looking view of a company’s expected financial performance. These projections are crucial in assessing the potential risks and rewards associated with an investment....

Business valuation is the process of determining the economic worth or value of a business or company. It is a critical financial assessment that helps stakeholders understand the value of a business for various purposes, such as selling, buying, financing, investing, or makin...

In the dynamic landscape of the Indian startup ecosystem, understanding how market trends affect the valuation of startups is crucial for business leaders, entrepreneurs, and startups alike. According to recent statistics, India has emerged as one of the world’s fastest-growin...

Business valuation is a complex process that demands precision and expertise. Missteps in valuation can significantly affect business decisions, financial planning, and even legal outcomes. Here are nine common valuation mistakes that business owners, especially those involved...

As business leaders, entrepreneurs, and start up enthusiasts, understanding the intricacies of valuation models is crucial for making informed investment decisions. One such model that plays a pivotal role in this domain is the Capital Asset Pricing Model (CAPM). Let’s delve i...