Convertible Bond Valuation

Valtech’s valuation team has recently completed a valuation in relation to convertible bonds of an electric vehicle charger business.

Convertible bonds are very common financing options for early-stage companies, yet they can be difficult to value due to the complexity of having an embedded option to be converted into stocks. Based on the negotiations with investors, there could also be lots of relevant terms that may affect the value of the convertible bond, including call/put options, early redemption terms, etc. Engaging a professional valuer can assist the management team to identify those terms, consider the impact in the model, and correctly classify the value into debt and equity components for financial reporting purposes. Valtech’s team is well qualified and experienced in handling these kinds of valuation.