Introduction

Excalibre Value is a Business Valuation service provider with an Intrinsic Valuation focus.

Excalibre Value analyses the Financial Statements of a Business as a ‘Going Concern’ over ‘One Complete Economic Cycle’ to perform ‘Fundamentals based’ Securities Research & Investment Analysis of a variety of Equity (Common & Preferred Stock), Fixed Income (Bond & Debenture) and Hybrid Securities issued by the Business.

Excalibre Value also provides Securities Research and Investment Analysis for Equity and Debt as well as Structured Financing.

Excalibre Value’s genesis is its aspiration to serve as an trustworthy independent third-party Business Valuation service provider, which is relied upon by both Finance-Providers such as many leading Nationalized and Private Sector Banks and Non-Bank Finance Companies (NBFCs) one the one hand, as well as Finance-Seeking Corporates on the other.

Excalibre Value provides arms-length Valuation of Equity, Fixed Income and Hybrid Securities free of any Conflict-of-Interest.
Excalibre Value does NOT represent either a Corporate or a Financial Institution and does NOT undertake any Agency Relationship with any of the parties. Excalibre Value does NOT enter into any contract and/or pricing negotiations between any of the parties.

Methodology

Excalibre Value uses the following Valuation Methods:

A. Principal ‘Intrinsic Value’ Analysis

1. ‘Residual Income’ Method

(This is the principal Intrinsic Valuation method)

2. Cash Flow Methods

i. Discounted ‘Free Cash Flow to Firm’ (FCFF)
ii. Discounted ‘Free Cash Flow to Equity’ (FCFE)

3. Income Methods

Discounted EBITDA / EBIT / EBT / Net Earnings

B. Alternate ‘Relative Value’ Analysis

(For Specific Comparables / Peer Group / Industry Analysis)

1. ‘Market Multiples – Price’ Method

2. ‘Market Multiples – Enterprise Value’ Method

C. Special Cases’ Analysis

1. ‘Synergistic Asset Value’ Method – for Mergers & Acquisitions

2. ‘Stressed Asset Value’ Method – for Asset Re-Construction

3. ‘Net Asset Value’ Method – for Collateralization

Deliverables

A. Financial Model

(Based on Financial Statement Analysis over One Complete Historical Economic Cycle)

Contents:

1. Normalized Financial Statements

2. Derived (Indirect) Cash Flow & Fund Flow Statements

3. Ratio Analysis:

A. Liquidity and Working Capital Analysis
B. Solvency (Leverage and Coverage) Analysis
C. Efficiency Analysis
D. Profitability and Du Pont Analysis
E. Valuation (Income Basis and Cash Flow Basis) Analysis

4. Common Size (Vertical & Horizontal) Financial Statements Analysis

5. Historical Performance (Trend) Analysis

6. Peer Group (Cross-sectional) Analysis

B. Valuation Model

(Based on Financial Statement Analysis over One Complete Forecast Economic Cycle)

Contents:

1. Projection Model

2. Pro-forma Forecast Financial Statements

3. Valuation Model:

A. Principal Intrinsic Value Analysis: Residual Income Method and Discounted Free Cash Flow & Income Methods
B. Alternate Relative Value Analysis: Market Multiples – Price & Enterprise Value Methods
C. Special Cases Analysis: ‘Synergistic/Stressed/Net’ Asset Value Method (If Applicable)

4. Sensitivity/Scenario Analyses of Economic Forces & Corporate Actions