Overview of AI valuation
Overview
- Non-marketable securities valuation is a service that allows clients to fulfill their needs depending on various situations such as absence of active markets, inheritance of non-marketable securities, transfer of securities and valuation of specific assets. This process strictly follows our currently accepted K-IFRS 1039(Financial Instruments: Recognition and Measurement) and No. 1113(Fair Value Valuation).
- We mainly use the Discounted Cash Flow, or DCF, approach to value nonmarketable securities, and oftentimes incorporate other valuation methodologies like market-based approach and asset-based approach to calculate fair value of a security.
Our proud footprints
- Korea Asset Pricing has accumulated a wide range of experience and unmatched reputation by valuing over 18,000 non-marketable securities from non-marketable securities valuation to securities applied to the inheritance tax law.
- We provide trustworthy service to our clients. Our valuation coverage in securities markets reaches from KOSDAQ listed companies that hold nonmarketable securities, creditors(banks and companies) that possess sales restricted stock/share to investment management companies and FB&A divisions within a company that manage such securities.
- We are No.1 in non-marketable securities valuation, and are unmatched when it comes to quality and excellence in our service.
- We provide superior service to our clients in a timely manner such as valuation reports in accordance with K-IFRS, internal and external audit support, and valuation back-data when necessary.
Our Valuation Approach
Bottom-Up Approach
- Categorizing target companies by size and industry to select the most reasonable valuation model
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Breaking down complex securities(options, warrants etc) to individual underlying assets.
→ Valuation of those individual underlying assets
Statistical and Scientific Approach
- Valuation based on the weighted average applied financial models by industry and size
- Valuation based on key indicators such as growth rates to derive price distribution
Thorough Verification
- Verifying the robustness of valued price
- Validating the final product through third-party network
Key Considerations
- KAP has a series of valuation models that can be applied to specific companies under specific conditions.