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ValU - Financial Valuation Analysis

ValU is a financial valuation application developed with sound economic principles and today’s corporate finance practice in mind. It includes the constant growth model and 2-stage FCFF/FCFE favored by academics, consultants and analysts as well as the EBITDA relative valuation approach favored by lenders for loan covenants, investment bankers and corporate officers.

With ValU on your iPhone, iPod Touch or new iPad, you will be able to:

- Quickly analyze potential deals and focus on the key valuation drivers to aid in a negotiation or recast workings of much larger models on the fly

- Keep a record of previous valuations and create multiple scenarios of the same asset for different target capital structures (reflected in after tax cost of capital), different operating performance/synergies (reflected in margins, sales or growth) or other assumptions

- Conduct a sensitivity analysis and reasonableness checks to better defend a valuation

- Value any other cash generative asset on an economic basis, e.g. commercial or residential property investment on basis of expected rental revenue

- Fine tune the valuation with an optional supplementary analysis which takes account of depreciation (to calculate EBITDA), excess cash, investments in marketable securities and non operating assets (to determine total market value of assets), market value of debt (to determine equity value), and number of shares issued (to calculate share price)

- Easily conduct what-if analyses. When adding a new valuation you can choose to duplicate an existing one, give it a new name, then select the new valuation and quickly make adjustments

- Thumb through each year's projected sales, operating profit, net new investment, down to free cash flow level, economic profit as well as beginning and ending capital

ValU provides summary analyses including economic profit, enterprise value from assets in place versus from growth options, implied EBITDA multiple and share price. The necessary capital reinvestment rates to support growth expectations are calculated and will aid investment policy decisions as well as financial policy decisions - e.g. dividend policy. ValU provides a clear reminder that value maximization is about maximizing enterprise value and not about maximizing growth (growth cannot create shareholder value when return on invested capital is equal to or less than cost of capital). Key definitions are provided in a separate Notes section.

Investors: do your own quick valuation of a stock or of other investments you are considering

Dealmakers: quickly evaluate merits of a deal under different conditions, e.g. growth, operating performance, leverage, cost of capital, tax rates etc

Executives: recreate the valuations from M&A advisors or consultants to evaluate value drivers and implicit assumptions or quickly check existing in-house valuations for reasonableness

Operating managers: better understand and explain the company’s drivers of value (more than just knowing what a company is worth but energizing managers to grow the value)

Consultants: validate your models or take a simpler approach to getting a first pass assessment

Students of finance: learn the techniques and intuition behind the major deals you read about

Latest Features:
* Sensitivity analysis on enterprise value: cost of capital, perpetuity growth rate, EBITDA and sales multiple
* Select mid period discounting or end of period discounting
* Adjust for date of valuation
* 2 Stage model with explicit forecast period
* Options for explicit forecast period:
- forecast capex as % of sales or directly enter capex
- forecast depreciation as % of capex or directly enter
- forecast change in net working capital as % of change in sales
*Terminal value on basis of intrinsic valuation or relative valuation