Valer incorporates a football field report style to compare and summarize the results of different valuation methodologies to value a company. It is prepared using a floating bar chart and summarizes a range of values for a company, based on different valuation methodologies and assumptions. The football field is commonly used in investment banking. The underlying purpose of the chart is to give a visual representation of the valuation range, average, and target valuation for the company/asset.
The valuation process involves making a significant number of forecasts and estimates to measure the financial performance of a company. Future cash flows could vary from estimates for various reasons including lower-than-expected demand (resulting in decreased sales), technological disruption, regulatory changes, etc.
To deal with such uncertainties and reduce the margin for error, Valor utilizes numerous valuation methodologies for valuing a single company.
How to read the report
Valer reporting starts with implied valuation range by methodology as viewed top to bottom of the football field style graph. To the right are assumptions and company metrics utilized to output the valuation ranges.
The mid section details methodology aggregation, which at this time ascribes DCF, VC and Public Comparables at 1/3 each, broken down into metrics chosen.
Lastly, the valuation summary will display analysis regarding metrics at various prices and hypothetical fund round percentages at each valuation number.