ValuationFramework
Step 1: Create ‘Valuation Framework’
The design of the ‘valuation framework’ is one of the most critical aspects of the valuation process. However, once created, it only needs to be updated if new assets are to be valued that do not fit the existing asset hierarchy or if you wish to change the underlying assumptions.
The valuation framework includes:
- Asset Hierarchy
- Financial Reporting Hierarchy
- Valuation profiles
- Rules that determine which valuation profile to apply
- Various assumptions