COVID-19: What is fair value in times of uncertainty?

April 2020

Fair values of businesses and investments are generally expected to decrease due to the significant impact of COVID-19. You can consider the following factors and adjustments to account for uncertainties surrounding fair value measurements:

  1. use of a combination of different valuation methods; 
  2. adjustments for discounts on liquidity and other risks; and 
  3.  analysis of several scenarios reflecting the wide range of COVID-19 impact on future cash flows.

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Mary Jade T.  Roxas-Divinagracia, CFA, CVA

Mary Jade T. Roxas-Divinagracia, CFA, CVA

Deals and Corporate Finance Managing Partner, PwC Philippines

Tel: +63 (2) 8845 2728

Darwin B. Saribay, CFA

Darwin B. Saribay, CFA

Deals and Corporate Finance Partner, PwC Philippines

Tel: +63 (2) 8459 3438