Firm Valuation Assignment Help
Firm valuation is a part of finance and accounting. Students who study higher level courses on finance, are often given assignments on firm valuation. Later in their profession, they occasionally deal with the cases of firm valuation. It is important for a client to understand the real valuation of a firm and whether it is worth investing in. This is a major decision and involves huge amount of money, thus finance and accounting professionals should have a clear understanding on the subject. Through these assignments, examiners test how much efficiency the students have in this matter. But, for a student, assignments mean another mode of examination, where a simple mistake will lead to a lower grade which is not expected at all. Thus, the best way to get firm valuation assignment help from BookMyEssay.
Firm valuation: An Overview
Investors, management, or government authorities may need valuation of a firm for varied reasons. In most of the cases, this matter is of great importance for merger and acquisition, sale of securities, or for any taxable issues. Sometimes, owner of a firm prepares firm valuation statement for selling off the firm completely or an investor may like to assess the value of a firm before investing in it.
It is necessary to recognize the purpose of the valuation before a valuation process is adopted. Normally, the purpose for which the valuation is undertaken determines the method of valuation to be adopted and type of data required for the valuation. Valuations can be for an entire business, for a part of the business or for a certain group of assets. In practice, the size of the firm does not affect the method to be adopted. The finance professional who is assigned the job just needs to adopt the perfect method and abide the laws of the land regarding this matter.
So, this is evident from the above discussion that whenever an assignment is given on firm valuation, student must recognize the adoptable method and must have clear understanding on the rules and regulations in this field.
There are several purposes for which firm valuation is required –
- Disputes among shareholders
- Mergers and acquisition or sale of the firm
- Divorce settlements
- Wills and estates
- Business analysis
- Book keeping purpose
Apart from these, there may be other purposes of valuation, but in any case perfect valuation with the help of a perfect methodology is needed.
There are four basic types of firm valuation methods available to the professional all over the world –
- Discounted cash flow (DCF) analysis – This method is the most exhaustive way to value a firm. There are two methods customarily followed to value a firm using the DCF approach:
- the Adjusted Present Value (APV) method and
- the Weighted Average Cost of Capital (WACC) Method.
Both approaches involve calculation of the free cash flows (FCF) of a business and the net present value (NPV) of these FCFs.
- Comparable transactions method – With this method of valuing a firm, the professional needs to look at transactions that have taken place in the industry that are comparable to the transactions under consideration. In this method, key valuation parameters are assessed.
- Multiples method – In practice, there may not be enough information available to be able to determine the value of a business using comparable transaction method. In those cases, multiples method is used. Examples of these valuation multiples include price/earnings multiples or P/E ratios, and EBITDA multiples etc.
- Market valuation – These approach is based on market valuation of business, which is established on the economic justification of competition. The method opines that in a free market, the demand and supply directly affects the valuation of business properties. The investors are not prepared to pay higher sums for the business and the owners are not ready to receive any amount less than the actual market value of the firm or assets.
Thus, in this context also, students need to have clear understanding of all these methods and how these methods can be used in actual practice accurately.
Help with Firm Valuation Assignment Writing
BookMyEssay provides all necessary support to students in order to complete his firm valuation assignment writing task perfectly. The organization provides the most experienced writers to complete firm valuation assignments authentically. These writers are highly experienced people who have excellent academic records and vast industrial experience. Apart from these, BookMyEssay is known for its all-around professional help with assignment writing that includes the following –
- 24×7 customer support service, where students can contact any time of the day from anywhere.
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Also, the expenses for availing this service is very much affordable and it is a fact that students from all economic backgrounds have been immensely benefited from firm valuation assignment help of BookMyEssay.