Methodology

A) Property Valuation Methodology

When valuing real estate, we select the appropriate combination of methods, such as:

  1. Market Comparison Approach

    • Identifying comparable properties

    • Adjusting for differences (location, size, condition, date of sale)

    • Deriving market value based on real transactional evidence

  2. Income Approach (for rental or investment properties)

    • Analysing rental income and operating expenses

    • Assessing sustainable net income

    • Applying appropriate yields or capitalisation rates

  3. Cost Approach

    • Estimating the cost to construct or replace the asset

    • Deducting depreciation for age, condition and obsolescence

    • Considering land value separately where applicable

Each report explains which methods have been applied and why, and how the final value conclusion has been derived.

B) Asset Valuation Methodology

For movable assets, machinery and equipment, we use:

  • Replacement cost and reproduction cost models

  • Depreciated replacement cost (DRC)

  • Technical life expectancy analysis

  • Assessment of remaining useful life

  • Estimation of residual value

We regularly review market sources, industry data and, where applicable, vendor information to ensure realistic and supportable valuations.

C) Company Valuation Methodology

Company valuation (enterprise value assessment) is typically based on one or more of the following approaches:

  1. Income-based Method – Discounted Cash Flow (DCF)

    • Projection of future cash flows

    • Determination of discount rates

    • Calculation of present value of expected returns

  2. Market-based Methods – Multiples

    • EBITDA, EBIT or revenue multiples

    • Selection of comparable companies or transactions

    • Adjustment for size, risk and growth differences

  3. Asset-based Approach

    • Adjusted net asset value

    • Revaluation of significant assets and liabilities

    • Consideration of off-balance sheet items where relevant

Our reports clearly describe:

  • which method(s) were used

  • the key assumptions and parameters

  • how risk factors were reflected

  • how the final value range or point estimate was determined

D) Quality Assurance

Before a report is delivered, we carry out an internal review to ensure:

  • consistency between data, assumptions and conclusions

  • compliance with relevant standards

  • clarity of structure and wording

This quality control is an important part of our professional responsibility as a valuation authority.

Valuation Methodology & Principles

At Elite Valuation M&A Advisory, our valuation practice is built on internationally recognized standards, rigorous analytical discipline, and deep transactional insight. We deliver valuations that are defensible, transparent, and action-oriented, supporting strategic decision-making in mergers & acquisitions, investment planning, restructuring, and shareholder negotiations.

Our Valuation Philosophy

We believe that a valuation is not merely a number—it is a strategic tool.
Our approach integrates:

  • Economic reality over accounting form

  • Forward-looking cash-flow intelligence rather than static historical views

  • Risk-adjusted returns aligned with market expectations

  • Transparent assumptions grounded in verifiable data

Every valuation we deliver aims to reflect the true intrinsic value of an asset or company, its market positioning, and its strategic potential under realistic scenarios.

Core Valuation Methodologies

1. Income Approach

Focused on the company's ability to generate future cash flows.
This method is preferred when stable operations and predictable cash generation exist.

Discounted Cash Flow (DCF)

Projection of free cash flows

Risk-adjusted discount rate (WACC)

Terminal value via Gordon Growth or exit multiple

Sensitivity analysis on key variables (growth, margins, discount rate)

Economic Value Added (EVA)

  • Measures value creation above cost of capital

  • Clear insight into long-term economic performance

2. Market Approach

Benchmarking against observable market data from comparable companies or transactions.

Public Comparable Companies (Trading Multiples)

  • EBITDA, EBIT, revenue, and P/E multiples

  • Industry-specific KPIs (ARPU, AUM, etc.)

Comparable Transactions (Deal Multiples)

  • Recent M&A transactions in relevant geographies and sectors

  • Reflects acquisition premiums and control valuation

This method is ideal for understanding market sentiment, competitive positioning, and valuation floors/ceilings.

3. Asset-Based Approach

Used when value is primarily driven by tangible or identifiable intangible assets.
Common for holding companies, distressed assets, or capital-intensive industries.

Net Asset Value (NAV)

Fair market value of assets minus liabilities

Independent appraisal of real estate, machinery, and equipment

Adjusted Book Value

  • Adjustments for depreciation, impairment, contingent liabilities, and off-balance sheet exposures

Specialized Valuation Capabilities

  • Startups & high-growth technology (scenario-based modelling, option valuation, Monte Carlo simulations)

  • Natural resources & mining (JORC/SAMREC principles, reserve-based modelling)

  • Real estate & infrastructure (discounted land residual, stabilized NOI, cap rate modelling)

  • Financial institutions (risk-weighted assets, regulatory capital modelling)

  • Intellectual property & intangible assets (relief-from-royalty, multi-period excess earnings)

Valuation Principles We Adhere To

1. Objectivity & Independence

Our valuations are unbiased and free from conflicts of interest, ensuring full credibility with investors, regulators, and counterparties.

2. Transparency

Every assumption, input, and methodology is clearly documented for auditability and client confidence.

3. Consistency with International Standards

We apply standards including:

  • IVS – International Valuation Standards

  • IFRS Fair Value Measurement (IFRS 13)

  • OECD Transfer Pricing Guidelines (where relevant)

4. Materiality & Relevance

We focus on drivers that truly influence value—operational performance, industry structure, risk profile, scalability, and future market dynamics.

5. Sensitivity & Scenario Testing

Our models include multi-scenario analyses to capture uncertainty, stress-test assumptions, and help clients understand value under varying market conditions.

Our Deliverables

Each valuation assignment includes:

  • A fully structured Valuation Report with executive summary

  • Detailed financial model (DCF, comparables, or hybrid)

  • Benchmarking dashboards and industry analysis

  • Sensitivity scenarios and valuation ranges

  • Clear conclusion on equity value, enterprise value, or project value

Why Clients Choose Us

Elite Valuation M&A Advisory combines technical excellence with board-level strategic insight. Our valuations deliver not only a number—but clarity, confidence, and leverage in negotiation, investment decisions, and long-term planning.