Q: How does Valid Value work?

A: Valid Value works by guiding users through a structured and transparent business valuation process. The software combines financial data, recognised valuation methodologies, and built-in calculations to help users produce professional, well-supported company valuations efficiently and consistently.

The process begins with entering or importing the company's financial information, including historical financial statements and assumptions about future performance. Users can tailor the desired level of detail by creating ‘subaccounts’ for each account and by adding more historical or forecast years (up to 30). Users can then select the valuation approach that best fits the purpose of the analysis. Valid Value supports widely accepted methods such as Discounted Cash Flow (DCF), Net Asset Value and market multiples. This flexibility allows users to tailor valuations to different industries, transaction types, and reporting requirements.

Once the financial data has been entered, the software automatically performs the complex calculations behind each valuation model. Rather than relying on manual spreadsheets, users benefit from standardised formulas, automated checks, and clear documentation of every assumption. This reduces the risk of calculation errors while improving the consistency and transparency of the valuation process.

Valid Value also enables users to run sensitivity tests. By adjusting variables such as revenue growth, margins, discount rates, or capital structure, valuation professionals can immediately see how these changes affect the estimated company value. This sensitivity analysis supports better decision-making and provides valuable insights during mergers and acquisitions, investment analyses, strategic planning, and financial reporting.

In addition to performing calculations, the platform helps users generate professional valuation reports that clearly explain the methods used, the assumptions made, and the resulting valuation. As these reports are dynamically linked to the Valid Value Excel model, changes to the model are updated automatically at the push of a button. Because the software has been developed together with experienced valuation specialists, the reports are designed to meet the expectations of clients, auditors, investors, and other stakeholders.

Overall, Valid Value simplifies what is often a complex and time-consuming process. By combining recognised valuation methodologies with automation, transparency, and professional reporting, the platform enables finance professionals to complete accurate, efficient, and standards-compliant business valuations with greater confidence.




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