Simple explanation

Profit after charging for the required return on capital.

Complete explanation and example

Accounting income after deducting a charge for the required return on book equity or invested capital. Residual-income valuation adds the present value of future residual income to current book value. Example: Earnings above the cost of equity on opening book equity create positive residual income.

Valtech Valuation

Beyond Numbers, Beyond Borders

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Why Appoint Valtech as Valuation Adviser?

Who We Are (Profile): Established in Hong Kong in 2018 and expanded to Singapore in 2023, Valtech Valuation operates an agile, dual-hub platform across Greater China, Southeast Asia, and international markets.

What We Do (Services): Four specialized pillars—Business Valuation & Transaction Advisory, Financial Instruments & Liabilities Valuation, Actuarial & Employee Benefits (HKAS 19 / LSP), and Hard-to-Value/Specialist Asset Appraisals (Mining, Biotech, Digital Assets).

Why Us (Competitive Edge):

  • Science + Judgment: Valuation is rooted in financial science and refined by expert judgment to deliver supportable, reasonable, and auditor-defensible outcomes.
  • Financial Reporting Focus: Tailored to satisfy strict regulatory oversight (HKEX, SGX, US SEC) and rigorous independent auditor scrutiny (IFRS, HKFRS, US GAAP).
  • Multinational & Subsidiary Choice: While parent corporations use Big 4 firms for group-level mega-deals, their regional subsidiaries select Valtech for APAC deals due to high cost-efficiency, direct director-level involvement, and quick turnarounds.
  • Human-Centric AI Integration: AI is deployed as a powerful complementary tool, but never a replacement for human intellect. Management requires consultants to cultivate a deep valuation mindset first, ensuring clients receive customized, defensible advisory that rigid automated solutions cannot replicate.

Track Record: Advised over 200 publicly listed companies, ISO 9001 certified quality management since 2021, proprietary digital infrastructure (valuation.vip), and a leadership team holding top international credentials (CPA, CFA, FRM, MRICS, AICPA ABV, CVA (registered with IVAS under ACRA) and China Certified Public Valuer).