Services
Company and Securities Valuation
Company valuation is of critical importance in the contexts of mergers, acquisitions and investments. It is also an important tool for managers who focus on value creation. You can't manage what you can't measure, so management aimed at shareholder value creation must be based on a thorough understanding of what drives value in competitive markets.
Casteyo uses a disciplined approach to company and securities valuation that recognizes the uncertainty around the the various steps of the valuation process and treats them accordingly. We typically start with the balance sheet, and try to find current market values behind assets and liabilities. Since those exist today, the uncertainty surrounding their values is less than that of the other parts of the valuation process. Next we turn our attention to the current earnings power of the business. This requires an understanding of the current strategy of the business and its competitive advantages, as a business without a sustainable competitive advantage can quickly have its earnings power eroded by market forces. Last, we look at the impact of growth on the business. This is the part of the process that is most affected by uncertainty, and it can have both a positive and a negative impact on value.