Cyndx Valer is an AI-driven company valuation tool that uses machine learning to analyze a company's financials and extract insights using Cyndx’s comparable discovery capability through a series of step-by-step, guided interactive pages — allowing entrepreneurs, investors, and analysts to get a more accurate picture of a company's worth using traditional methods, quickly and easily.

Valer works by leveraging our Finder AI technology to compare your own financials against your competitors in the market, and instantly returns your valuation report based on Public Comparables, VC and Discounted Cash Flow analyses.

Introduction to Valer - Video tutorial:

For better accessibility of videos visit our help center article:

Valuation Video Tutorials

Also see: Valuation Cap Table Glossary

Creating your custom valuation is a 4-step process as detailed below.

4 Steps to Get Started

Click on the link of each step or scroll down for more detailed information below.

Step 1 - Enter company information

Step 2 - Input financials

Step 3 - Set parameters

Step 4 - Select comparables

That's it! You're ready to generate your report.

Step 1 - Enter company information

First, log onto the Cyndx platform.
At the top bar, select the Valer tool. You will be directed to the “Reports” page. Click on the arrows on the left to expand the Valer menu. Select “New Report”. You will be taken to the Company Information Input page.

Here you will enter the following information:

Company name
Company website url
Sector
Industry
Year founded - Why do I need to enter this?
Country - Why do I need to enter this?

Once you have entered the required information, hit "Next" and proceed to the next step.

Step 1: Video tutorial

Step 2 - Input Financials

There are two methods for generating the Valuation upload template. First, you will be directed to a pop-up after you complete the information required in the Company Info step. Here you will be prompted to select the years and units for the company financial along with the valuation date to download the Excel template. You may provide up to 3 years of historical financials, and up to 8 years of projected financials.

Method 1: Select the historical year, forecast period, stub period, valuation date and units to use for your valuation. Then select “download template”.

Method 2: If you do not change any of the inputs before downloading the template, you will be provided the standard template. If you wish to make adjustments or accidentally click out of the download template modal, you can adjust your financial information parameters above the financial table.

Click “update” and then go to the arrows at the top right of the financial inputs table.
From here, if you select the blue arrow pointing downward, the platform will download an excel template with the adjusted parameters.

Input your financials to the template and save it.

The blue arrow pointing upward will allow you to select the completed file from your computer to upload.

Alternatively, you may hit "Update" and enter your financials directly into Valer from this page.

When you are finished, hit "Next" at the bottom of the page to proceed to the next step.

Read more on:

How to generate an Excel template to upload financials
How to input my financial information
How to update my financial information

Step 2: Video tutorial

Generating a template and uploading template back - video tutorial:

After uploading the updated template - video tutorial:

Find more helpful questions and answers in our Help Center under the section titled
Step 2: Input Financials - Creating Your Financial Projections.

Step 3 - Set Parameters

Now you are ready to set your parameters to additionally customize your valuation reports.

Set your parameters for the DCF Method:
1. Amortization expense continues in perpetuity?
  Select "On" if amortization expense occurring in the final year of the projection period relates to recurring investments in intangible assets. If "On" is selected amortization expense and sustaining capitalized development costs will be assumed to occur in perpetuity. Select "Off" if amortization in the final year of the projection period relates to non-recurring acquisitions or investments in intangible assets.
2. Apply mid-year discounting convention?
  Select "On" if amortization expense occurring in the final year of the projection period relates to recurring investments in intangible assets. If "On" is selected amortization expense and sustaining capitalized development costs will be assumed to occur in perpetuity. Select "Off" if amortization in the final year of the projection period relates to non-recurring acquisitions or investments in intangible assets.
3. Estimated average useful life of PP&E
  Enter an estimate of the average useful life of property, plant, and equipment created from capital expenditures projected in the financial forecast.
4. Estimated average useful life of amortizable intangibles
  Enter an estimate of the average useful life for intangible assets created from capitalized development costs projected in the financial forecast
5. Marginal effective tax rate
  Adjusts marginal effective tax rate used in weighted average cost of capital calculation. You may override default tax rate, which is based on national average for company's home country
  
  See also: How do the DCF parameters impact my valuation?
Set your parameters for the VC Method:
1. Select funding stage
  Select the funding round of the company's next capital raise. If no capital raise is planned, select the funding round which most closely reflects the company's stage of development.
2. Will further capital raises be required to achieve financial projections?
  If the company's financial projections anticipate a need for external capital to hit level of sales and earnings modeled in the projection period, select "yes." Otherwise, select "no."
3. Estimated timing range of exit
  Set the range for timing of exit of future enterprise value used in venture capital method valuation.
  
  See also: How do the VC method parameters impact my valuation?
Set your capital structure parameters:
1. Show valuation results in terms of Implied Equity Value
  If the company has convertible debt, select "No" for "Show valuation results for Implied Equity Value" and calculate equity value in a separate waterfall analysis.
2. Enter post-money valuation as of last capital raise
3. Net Debt Calculation as of the Valuation Date
  1. Enter the principal amount of any financial debt
    Includes any debt with interest-bearing liabilities bank loans, bonds, credit card debt, mortgages, lease obligations where rent is not included in EBITDA, and SBA loans.
  2. Enter other financial & non-operating liabilities
    Includes the value of any liabilities unrelated to the business's continuing operations besides indebtedness.
  3. Enter cash and cash equivalents and other liquid investments (before any capital raise)
    This includes other liquid investments such as holdings of publicly trades shares, bonds, bills, commercial paper, certificates of deposit, and money market accounts.
  4. Equity method investments
    Enter the market value (or estimated market value) of investments in the equity in other companies that are not consolidated subsidiaries.
  5. Other financial & non-operating assets
    Enter the value of any other assets not related to the continuing operations of the underlying business.
  6. Planned capital raise amount
    Enter the amount of capital the company currently seeks to raise. If no near-term capital raise is required, set this amount to be $0.
4. Pro forma net debt / (cash)
  Outstanding debt, financial liabilities, and non-operating liabilities less cash, financial assets, and non-operating assets adjusted for planned capital raise.
5. Estimated 2022E net interest expense / (income)
  Estimated interest expense less interest income.
  
  See also: How do the capital structure parameters impact my valuation?

Once you have entered the parameters, hit "Next" at the bottom of the page to proceed to the next step.

Step 4 -Select Comparables

Now you are ready to select your comparables. Valer works by leveraging our Finder AI technology to compare your own financials against your competitors in the market.

First, add a private peer company.

Type in the name or url of your closest competitor and select the private peer company from the dropdown to help our algorithm generate better public comparables for your valuation.

Second, add public comparable companies.

Select the 2 publicly traded companies that are most comparable to your company. These companies will be directly included in the list of comparables used for the valuation.

Hit Generate Comparables.

Third, from the Select Comparables page, select the most relevant companies to use as peer companies to generate your custom valuation report. You may compare and select peer companies from the Comparables or the Multiples tab.

See How to select comparables and More on public company comparables for additional information on this step

Once you are done, hit Generate Report to issue your custom valuation report.

Please note that each report generated is considered as one valuation run and charges will be calulated with each run.
Name your report, and then confirm by clicking "Generate report" to proceed.

Step 4: Video tutorial

Selecting your public comparable companies:

After selecting company comparables:

Find more helpful questions and answers in our Help Center under the sections titled

Step 4: Select Comparables and Understanding the Valuation report

Also find more helpful questions and answers in our Help Center regarding our
Raiser products.