Valuation insights
Articles on business and share valuation, valuation methodology, and the Indian statutes that govern it — the Companies Act, SEBI regulations, the Insolvency and Bankruptcy Code, the Income Tax Act and FEMA. Written by the Flookup Valuation team.
When is impairment testing required under Ind AS 36?
Understand when impairment testing is required under Ind AS 36, including annual testing for goodwill and intangible ass...
Section 8 Company Valuation: Methods and Key Considerations
Explore the key methods and considerations for Section 8 company valuation in India, including asset-based approaches, i...
Risk-Free Rate in India: Its Role in Business Valuation
Explore the role of the risk-free rate in Indian business valuation, including how government bond yields influence disc...
Understanding Merger Valuation Under Section 232
Understand merger valuation under Section 232, including valuation methods, fairness considerations, key regulatory requ...
Comparing PWERM and Monte Carlo Simulation for Valuation
Explore the key differences between PWERM and Monte Carlo Simulation in private company valuation, including their metho...
How long is a valuation report valid?
How long is a valuation report valid? Understand the typical validity period of valuation reports, key factors that can ...
Valuation for Preferential Allotment Under Section 62
Understand valuation requirements for preferential allotment under Section 62, including applicable valuation methods, p...
Valuation for overseas direct investment (ODI)
Learn how valuation plays a key role in Overseas Direct Investment (ODI), including valuation methods, regulatory requir...
Valuation Under Rule 11UA(Rule 57) : Key Methods and Considerations
Understand valuation under Rule 11UA, including key valuation methods, fair market value determination, applicable provi...
How to Perform Purchase Price Allocation Under Ind AS 103
Learn how to perform Purchase Price Allocation (PPA) under Ind AS 103, including identifying acquired assets and liabili...
Non-Convertible Debentures: Valuation Methods and Approaches
Explore the key valuation methods and approaches for Non-Convertible Debentures (NCDs), including discounted cash flow, ...
409A Compliance for Indian Startups With US Subsidiaries
Understand 409A compliance for Indian startups with US subsidiaries, including valuation requirements, stock options, ta...
ESOP Valuation and Expense Under Ind AS 102
Understand ESOP valuation and expense recognition under Ind AS 102, including fair value measurement, key valuation meth...
How a Weaker Rupee Impacts Indian Company Valuation
Explore how a weaker rupee affects Indian company valuations through changes in revenues, costs, margins, cash flows, fo...
Asset and Business Valuation Under Regulation 35
Asset and Business Valuation Under Regulation 35 examines the valuation requirements under Regulation 35 of the IBBI (Li...
Tangible vs. Intangible Assets: Understanding Valuation
Understand the key differences between tangible and intangible assets, their valuation methods, and why accurate asset v...
DCF Valuation: Common Errors in Key Assumptions
DCF valuation is highly sensitive to the assumptions used in the model. This article explores common errors in key DCF a...
Why Do We Evaluate Companies?
Evaluating a company is essential for investors, business owners, and financial analysts to understand its financial hea...
Asset Beta vs. Equity Beta
When analyzing a company's risk, investors and analysts often use beta to measure its volatility relative to the market....
Gordon Growth Model
The Gordon Growth Model (GGM) is a simple way to value a stock based on its future dividend payments. It assumes that a ...
Key Financial Ratios and Their Interpretation
Financial ratios help investors, analysts, and business owners assess a company’s financial health, profitability, and e...
EBITDA vs. Cash Flow: Differences & Why It Matters
When analyzing a company’s financial performance, EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortizatio...
How CAPM Helps You Balance Risk and Return
The Capital Asset Pricing Model (CAPM) is a cornerstone of modern finance, providing a framework to assess the relations...
How does the dividend discount model differ from the discounted cash flow method
The Dividend Discount Model (DDM) and Discounted Cash Flow (DCF) method are both fundamental valuation tools, but they d...
Understanding Asset Valuation and Its Impact on Your Business
Asset valuation is the process of determining the fair market value of an asset. This can be done for a variety of reaso...
Understanding Beta in the CAPM Model
In finance, beta (β) is a cornerstone concept within the Capital Asset Pricing Model (CAPM) that quantifies an asset’s s...
FCFF vs FCFE: Understanding the Basics
In financial analysis, Free Cash Flow to Firm (FCFF) and Free Cash Flow to Equity (FCFE) are two crucial metrics used to...
How Discount Rate works in DCF Model
The discount rate in a DCF model helps adjust the value of future cash flows to their present value. This is because mon...
Understanding the DCF Model
The Discounted Cash Flow (DCF) model is a financial valuation method used to estimate the value of an investment, compan...
Valuation of Intangible Assets
In today's business world, intangible assets often hold more value than physical assets. A company's brand, patents, sof...
Valuation of Shares: Understanding the Process and Methods
Share valuation is a critical process in finance that involves determining the intrinsic value of a company's shares. Th...
How Valuers Drive Success in Mergers and Acquisitions
Mergers and acquisitions (M&A) are strategic business transactions that involve combining two or more companies to achie...
Business Valuations in India: Crafting the Future of Enterprises
In today’s dynamic business environment, companies in India must navigate a complex landscape of regulatory requirements...
Mastering Asset Valuation in Complex Indian Deals: Strategies for Accurate Assessments
In India’s rapidly growing economy, mergers, acquisitions, and strategic partnerships are common across sectors like tec...
Understanding Goodwill on the Balance Sheet: A Simple Guide for Investors
Goodwill is a common item on a company’s balance sheet, especially when businesses buy other companies. It shows the ext...
How Location Shapes Real Estate Value in India
Real estate valuation is a multifaceted process that involves determining a property’s market value by analyzing several...
Maximizing Your Startup ESOPs in India
India's startup landscape is thriving, with innovation hotspots like Bengaluru, Mumbai, and Hyderabad leading the charge...
Comprehensive Guide to Plant and Machinery Valuation
In India's diverse industrial ecosystem, from the IT hubs of Bengaluru to the textile corridors of Coimbatore, accuratel...
Cracking the Code of Inventory Valuation: A Roadmap to Financial Growth
Inventory valuation goes beyond an accounting obligation—it’s a strategic lever that shapes a business’s financial futur...
Property Valuation During Mergers & Acquisitions
Mergers and acquisitions (M&A) have emerged as powerful strategies for Indian businesses aiming to expand, diversify, or...
Mastering Asset and Liability Valuation
Valuing assets and liabilities accurately is at the heart of every sound financial decision. From securing investments t...
Essential Valuation Practices for Accurate Financial Reporting under IND AS
Ensuring accurate and transparent financial reporting is crucial for maintaining the confidence of investors, regulators...
Understanding Compulsory Convertible Debentures (CCDs): A Strategic Funding Approach in India
When Indian businesses seek to raise funds, they often face a critical choice: equity or debt financing. Equity dilutes ...
Share Valuation Techniques
Valuing a company’s shares involves estimating their intrinsic value—an assessment influenced by financial performance, ...
How to Calculate Startup Valuation: Step-by-Step Guide
Valuing a startup can seem daunting, as it involves navigating uncertainties while providing a clear financial assessmen...
Asset Valuation: Common Mistakes and How to Avoid Them
Accurately valuing assets is key to making smart financial decisions. Whether you’re buying a business, applying for a l...
Why Valuation Analysts Matter in Business Mergers: Easy Insights and Real-Life Examples
Mergers and acquisitions (M&A) are big steps for companies. They help businesses grow, reach new markets, and stay compe...
Challenges in Turnover-Based Company Valuation and Effective Solutions
When it comes to determining the value of a company, particularly in the early stages or for small businesses, turnover-...
Impairment and Its Impact on EBITDA: A Simplified Overview
Understanding how impairment affects EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is essenti...
Benchmark Valuation: A Key Tool for Investors
Investing in assets or companies can be challenging, especially when determining their true value. Benchmark valuation i...
Valuation of Alternative Investment Funds (AIFs)
Alternative Investment Funds (AIFs) are private pooled investment vehicles that invest in assets beyond traditional stoc...
The Impact of Asset Valuation on Financial Audits: A Closer Look
Ever thought about how an organization’s asset values can significantly impact its financial audits? Asset valuation isn...
A Guide to Security Valuation: Understanding the True Worth of Your Investments
Imagine you're looking to buy a new car. Would you make the purchase without understanding its true value? Of course not...
Valuation under the Companies Act, 2013
In the corporate world, valuation plays a crucial role in determining the fair worth of a company's assets, securities, ...
Valuation Under the SEBI Act, 1992 : Why It Is Important?
The Securities and Exchange Board of India (SEBI) Act, 1992, is a crucial regulatory framework aimed at protecting the i...
Valuation Basics: Understanding the Market Approach
Business owners often need to determine their company's worth. The market approach is a common valuation method that com...
Valuation under the Foreign Exchange Management Act (FEMA), 1999
FEMA, 1999, regulates foreign exchange transactions in India to maintain a balanced foreign exchange market and promote ...
Valuation Under the Insolvency and Bankruptcy Code (IBC), 2016: A Simplified Overview
Valuation under the Insolvency and Bankruptcy Code (IBC), 2016, plays a key role in resolving insolvency cases in India....
Key Share Valuation Methods for M&A and Investment Decisions
When engaging in mergers, acquisitions, or investments, one of the most critical steps is determining the value of a com...
Valuation under the Income Tax Act, 1961
Valuation is the process of determining the value of assets, transactions, or property for tax purposes. The Income Tax ...
How the Business Valuation Process Works?
Business valuation refers to the method used to determine the financial value of a company. This process is essential fo...
Business Valuation: 7 Key Concepts and Terms Explained
In the fast-paced business world, understanding the value and potential of a company is crucial. Business valuation invo...
The Importance of Business Valuation for Companies
In today's competitive business landscape, understanding the value of a company is more crucial than ever. Business valu...
SEBI Regulations and Acquisition of Shares: A Simplified Guide
Under the SEBI Takeover Code, shares are classified based on trading volume into Frequently Traded and Infrequently Trad...
Top 10 Situations Where Business Valuation is Essential
Business valuation is the process of determining the worth of a business, considering factors like management, potential...
Valuation Basics: The Three Valuation Approaches
Business valuation involves an in-depth qualitative and quantitative analysis of a business to determine an estimate of ...
5 Basic Principles of Valuation
Future Profitability Future profitability is the only thing that determines the current value. The price should be base...