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Business of Stock Valuation
Our company calculates stock prices by using different combinations of the following three models according to the purpose of the stock valuation.
- Income approach
- Cost approach
- Market approach
①Income approach：
It is a method of carrying out reduction evaluation of the return (profits, cash flow, dividend) gained in the future at current value, and evaluating the value of the company.
a．DCF method
It is a method of calculating the value of a corporate by applying the discount rate that reflects the risk of the corporate in its future cash flow.
b．Profit reduction method
It is a method of calculating the value of a corporate by applying the discount rate that reflects the risk of the corporate presuming it has a normal profit. It is adopted as a simple law of DCF method.
c．Dividend discount method
It is a method of calculating the stock value by applying the discount rate that reflects the risk of the corporate presuming the amount of expected dividends.
②Cost approach：
It is a method of evaluating the value of a corporate by carrying out evaluation of individual assets and liabilities of the corporate and taking the total sum into consideration.
a．Net book value method
It is a method of calculating the stock value based on the net assets book value of the balance sheet.
b．Adjusted net book value method
It is a method of calculating the stock value based on the adjusted net assets book value of the balance sheet.
c．Current price net assets method
It is a method of calculating the stock value based on the current price of the net assets of the balance sheet.
③Market approach：
It is a method of evaluating the value of a corporate by using evaluation of the corporate itself or other corporates in the same industry in the stock market.
a．Market stock price method
It is a method of calculating the stock value based on the stock price of a listed company.
b．Similar to public company method（using magnifications such as PER、PBR、EBITDA、EBIT, etc.）
It is a method of computing magnification of an unlisted company (PER, PBR, EBIT, EBITDA) based on a similar listed company's market stock price and various profits indices, which in turn facilitates calculation of the corporate value by applying the magnification against the profits index of the company.
c．Similar exchange method
It is a method of evaluating the corporate value by selecting several similar M&A dealings and using various magnifications based on the purchase price of similar dealings.
Cases we have handled
Preparation of allotment contract, outline and market price evaluation for Jasdaq listed company that issues preferred stock (Investor side: Tokyo Stock Exchange 1st section listed company)
For Hercules listed companies involving fund acquisitions in TOB, stock price calculation is carried out to respond to TOB and express its opinions towards the acquisition (Corporate being TOB: Hercules listed company)
Evaluation of common stock in allocation of new shares to a third party for sponsor of Heracles listed company, analysis of financial condition of the issuer, and making of business projection (Investor side: Osaka Securities Exchange 2nd section listing)
Offer of monitoring tool in AM business of office and residential buildings (rental rate etc.)
Evaluation of common stock at the time when minority shareholders of the subsidiary of 1st section of the Tokyo Stock Exchange listed company purchase the company's own stock (Issuer side: Subsidiary of 1st section of the Tokyo Stock Exchange listed company)
Consulting service on capital policy for IPO of the biggest unlisted company in the industry, transaction support for corporate value enhancement and measures against inheritance tax of owner possession stock (Issuer side: unlisted company)
Evaluation of stock value and business value related to M&A of non-bank financial institutions, IT companies, telecommunications, catering industry, medical institutions, non-profit organizations, etc. (Issuer side/investor side)
Please read the following file for details.
Introduction of stock valuation services（PDF）
For details of the contents and amount of valuation, please click here to contact us.
Moreover, please view the following site to learn more about stock valuation.
