Business Valuation Glossary / Terms

Providing business valuation services requires a considerable level of expertise and places a responsibility on valuation professionals to effectively communicate the process and outcomes of the valuation in a transparent and accurate manner. Hence, the use of well-defined terms that are generally recognized in the industry and consistently applied within the profession helps to promote clarity and quality of work.

This glossary serves as a tool for business valuation practitioners, solidifying the comprehensive knowledge required for accurate and meticulous value assessments, and facilitating the effective communication of the methodologies used to determine such values.

Adjusted Book Value Method
Adjusted Net Asset Method
Appraisal
Appraisal Approach
Appraisal Date
Appraisal Method
Appraisal Procedure
Arbitrage Pricing Theory
Asset (Asset-Based) Approach
Beta
Blockage Discount
Book Value
Business
Business Enterprise
Business Risk
Business Valuation
Capital Asset Pricing Model (CAPM)
Capitalization
Capitalization Factor
Capitalization of Earnings Method
Capitalization Rate
Capitalization Structure
Cash Flow
Common-Size Statements
Control
Control Premium
Cost Approach
Cost of Capital
Debt-Free
Discounted Cash Flow Method
Discounted Future Earnings Method
Discount for Lack of Control
Discount for Lack of Marketability
Discount for Lack of Voting Rights
Discount Rate
Economic Benefits
Economic Life
Effective Date
Enterprise
Equity
Equity Net Cash Flows
Equity Risk Premium
Excess Earnings
Excess Earnings Method
Fair Market Value
Fairness Opinion
Financial Risk
Forced Liquidation Value
Free Cash Flow
Going Concern
Going Concern Value
Goodwill
Goodwill Value
Guideline Public Company Method
Income (Income-Based) Approach
Intangible Assets
Internal Rate of Return
Intrinsic Value
Invested Capital
Invested Capital Net Cash Flows
Investment Risk
Investment Value
Key Person Discount
Levered Beta
Limited Appraisal
Liquidation Value
Liquidity
Majority Control
Majority Interest
Marketability
Market (Market-Based) Approach
Market Capitalization of Equity
Market Capitalization of Invested Capital
Market Multiple
Merger and Acquisition Method
Midyear Discounting
Minority Discount
Minority Interest
Multiple
Net Book Value
Net Cash Flows
Net Present Value
Net Tangible Asset Value
Nonoperating Assets
Normalized Earnings
Normalized Financial Statements
Orderly Liquidation Value
Portfolio Discount
Premise of Value
Present Value
Price/Earnings Multiple
Rate of Return
Redundant Assets
Replacement Cost New
Report Date
Reproduction Cost New
Required Rate of Return
Residual Value
Return on Equity
Return on Invested Capital
Return on Investment
Risk-Free Rate
Risk Premium
Rule of Thumb
Special Interest Purchasers
Standard of Value
Sustaining Capital Reinvestment
Systematic Risk
Tangible Assets
Terminal Value
Transaction Method
Unlevered Beta
Unsystematic Risk
Valuation
Valuation Approach
Valuation Date
Valuation Method
Valuation Procedure
Valuation Ratio
Value to the Owner
Voting Control
Weighted Average Cost of Capital (WACC)

Why Appoint Valtech as Valuation Adviser?

Valtech’s team has provided valuation advice to over 200 listed companies in Hong Kong, China, Singapore, Taiwan, Australia, the United Kingdom, the United States and Germany.

Valtech Valuation is a professional valuation firm accredited with ISO-9001 in valuation advisory services. The financial market and valuation requirements are highly dynamic. We are determined to develop and maintain a quality management system to foster an environment which is sustainable and evolving continuously. Our founders stress on development of a system and an environment that our consultants are provided with necessary support and opportunities to thrive.

We are a team of professionals from multiple disciplines including audit, financial modelling, tax, internal control and surveying. Our management adheres professional excellence. Abundant resources are reserved to develop standardized policies and procedures for quality control. We have solid track record in valuation advisory for listed companies, private equity, fund managers and financial institutions. We work closely with big four and other international accounting firms, corporate financial advisors, fund managers and legal advisors.

Valtech Advantages:

Advanced Valuation Techniques: Valtech Valuation can develop and implement advanced valuation techniques that are specifically tailored to the needs of clients. These techniques can go beyond traditional valuation methods and incorporate factors such as market trends, industry benchmarks, and risk analysis to provide more accurate and insightful valuations.

Customized Valuation Models: Valtech Valuation can create customized valuation models that align with the unique investment strategies and asset classes. By understanding the specific requirements and objectives of these entities, Valtech Valuation can develop models that capture the nuances of their portfolios, resulting in more precise and relevant valuations.

Data-driven Insights: Valtech Valuation can leverage its access to comprehensive data sources and analytics tools to provide data-driven insights. By analyzing market data, economic indicators, and performance metrics, Valtech Valuation can offer valuable insights into the valuation of assets, identify emerging trends, and help inform investment decision-making.

Adherence to Compliance and Reporting Standards: Valtech Valuation can ensure that valuation practices adhere to regulatory compliance and reporting standards. By staying updated on relevant regulations, such as accounting standards and industry guidelines, Valtech Valuation can help clients meet their reporting obligations accurately and in a timely manner.