valuation-models
Valuation Models
Purpose
Valuation translates a business into a price. Every M&A deal, fundraising round, employee option grant, impairment test, fair-value disclosure, and strategic divestiture relies on a defensible valuation. The discipline is not "compute a number" — it is to triangulate a defensible RANGE from multiple methods, document every assumption, run sensitivity around the high-leverage drivers, and explain why the range is the range. A valuation that produces a single number with no sensitivity is professional malpractice; the inputs are uncertain, so the output must be too.
This skill governs principal-level valuation work: choosing the right method for the asset class, building defensible models in spreadsheets or code, documenting assumptions in an audit-defensible footnote pack, and communicating the result honestly to the audience (board, acquirer, regulator, auditor, employee).