Portfolio Valuation – Private Equity

Request Overview

• To change the valuation methodology of the client’s portfolio company from Post-money equity value to the DCF, Trading, and Transaction analysis
• The investment became a year old and hence, it was required to change the valuation methodology
• The client mainly wanted a calculator for the three methodologies, inputs being handled by them

Final Deliverable and Value Add

• Created template for all methodologies with a tab summarizing the valuation from the methods
• Post that, screened through the company financials in detail to list down the line items for the calculation of the unlevered free cash flow used for the DCF valuation
• Found comparable companies and comparable transactions to be used for the valuation analysis
• Apart from the traditional DCF valuation method, the team also conducted trading and transaction comps
• This exercise saved ~1.5 days work of client

To conduct valuation exercise on portfolio companies on a quarterly basis