Business Valuation - DCF.
A discounted cash flow (DCF) valuation estimates what your business or shares are worth from the cash they are expected to generate, discounted at a rate that reflects risk. We build a detailed model from management's projections, test the assumptions, and issue a report in the form the purpose requires, whether for negotiation, FEMA pricing, the Companies Act or income tax.
Typically 2–3 weeks after complete information is received. Projections that need rework, or valuations that need a registered valuer's or merchant banker's sign-off, can take longer.
A partner — a chartered accountant or company secretary — from the first call to sign-off.
Based on your situation, and fixed in writing before any work starts.
Is this for you?
- Companies raising equity from resident or non-resident investors
- Promoters negotiating a sale, merger or buy-back
- Companies making a preferential allotment or granting ESOPs
- Businesses whose value lies mainly in future growth rather than current assets
What you receive at the end.
- 01DCF model with projections, free cash flows, discount rate, terminal value and sensitivity tables
- 02Valuation report with value or range per share
- 03Sensitivity analysis on growth, margins and discount rate
- 04Regulatory valuation certificate where required, such as for FEMA pricing
Business Valuation - DCF, step by step.
Typically 2–3 weeks after complete information is received. Projections that need rework, or valuations that need a registered valuer's or merchant banker's sign-off, can take longer.
- 1
Purpose and standard
We confirm why the valuation is needed, the valuation date and which law applies, because this decides who must sign the report and which methods are acceptable.
- 2
Information review
We review historical financials, the business plan, projections and management's key assumptions.
- 3
Test the projections
We test growth, margin, capex and working capital assumptions against history, industry data and the order book.
- 4
Discount rate and terminal value
We derive the cost of capital from market data and company-specific risk, and estimate the terminal value.
- 5
Cross-check and report
We cross-check the result against market-based methods and issue a report in line with the ICAI Valuation Standards.
What we need from you.
Don't have everything yet? We send a short checklist after the first call and work with what you have.
- Audited financial statements for the last three years and latest interim financials
- Management projections for three to five years, with key assumptions
- Cap table and details of any recent share transactions
- Details of debt, contingent liabilities and surplus assets
- Purpose of the valuation and any transaction documents
The fee depends on your situation. After a short call, the partner who will do the work tells you what's involved and gives you a fixed fee in writing — before any work begins.
- Government fees and statutory charges are billed at actuals.
- When you pay — upfront, in stages or on completion — is agreed in writing with the fee.
Questions about Business Valuation - DCF.
Ready to discuss Business Valuation - DCF?
30-minute confidential call — no proposal, no commitment. A partner will write back within one business day.