Company evaluation plays an increasingly important role in determining total assets, for firms as well as for investors.
However, company valuations regularly show substantial fluctuations, even on a daily basis – so the actually paid price of equity can deviate from the underlying long-term fair value.
The increasing volatility of company assets can in part be attributed to the influx of short-term valuations, quantitative investment models and the herd instinct of the investment community.
This observation led us to the idea to bundle our senior know-how as analysts and portfolio managers in a consultancy and service business – to help investors to systematically identify undervalued titles, and to consult funds and holdings in building and perfecting a portfolio based governance on key performance indicators and valuations.
For investors and M & A departments we look for quality companies the market does not value adequately, using a medium-term valuation approach. In doing so we avoid the mainstream, but we do not take alternative positions “as a matter of principle”. We also work with regard to the constantly changing accounting rules, and know the pitfalls of company valuation.
Normally short-term prognoses and their changes have a much smaller valuation influence than the market price fluctuations suggest. We analyze their nachhaltigen influence on the total value of the company. So they are being considered in the analysis, without necessarily leading to valuation changes.
We consult funds and holding companies concerning a structured investment process for active stock selection and its implementation. The orientation at fundamental valuation criteria creates a key performance indicator driven organization with clearly defined entry and exit criteria. Comprehensive sensitivity analyses allow for an extensive risk assessment.
Our principles for company valuations: