Valuation Approach. In valuing the Transferable Interests which are the subject of the Put Option or Call Option, as the case may be, the Valuers:
Valuation Approach. In valuing Alcoa's Transferable Interests, the Valuers:
Valuation Approach. Overview There are several generally accepted methods for determining the value of a company's equity interests or enterprise value ("Enterprise Value, or "EV"). In general, valuations are based on one or more of the following major approaches: • The Income Approach; • The Market Approach; and • The Asset-Based Approach. Income Approach The Income Approach is adopted where the business is believed to be viable as a going concern. The future earnings or cash flow of the business are converted to a value using procedures that consider the expected growth and timing, the risk profile of the benefits stream and the time value of money. The conversion of the benefits stream to value normally requires the determination of a discount rate (rate of return). In determining the appropriate rate, consideration is given to such factors as interest rates, rates of return anticipated by investors on alternative investments, the risk characteristics of the anticipated benefits of the subject entity, etc. Typically, the rate of return or discount rate used is consistent with the anticipated risks and benefits. The most commonly adopted methodologies are: • Discounted cash flow ("DCF"); • Capitalized cash flow; • Capitalized earnings; and • Multiple of EBITDA. Market Approach The Market Approach to valuation is a general way of determining a value indication of a business or an equity interest therein using one or more methods that compare the subject entity to similar businesses, business ownership interests and securities (investments) that have been sold. Examples of methods under this approach include, the "Guideline Public Company Method" and the "Precedent Transaction Method". The Guideline Public Company Method is a method whereby market multiples are derived from market prices of actively traded stocks of companies that are engaged in the same or similar lines of business. Under this method, guideline company data is used to develop value measures that can be applied to the subject company's financial data, in order to reach an indication of value for the issued shares of the subject entity. To the extent that the risk associated with an investment in the subject entity is different from that of the guideline companies, subjective adjustments are made to the market-based ratios to reflect such differences. Under the Precedent Transaction Method, valuation ratios are derived from open-market transactions of significant interests in entities engaged in the same or si...
Valuation Approach. Tyler shall value improvements in accordance with the Wisconsin Property Assessment Manual and the Client’s IAS CAMA solution. The three (3) industry-recognized approaches to value; i.e. market, cost and income, shall be considered by Tyler for all parcels. All accrued depreciation, including physical deterioration, functional obsolescence and economic obsolescence, must be accurately documented by the market and deducted from current replacement costs.
