Valuation publications

Access our library of publications providing insights and commentary on key valuation issues and topics.

Quarterly valuation insights

Latest trends in market multiples and transaction benchmarking for:

How to recognize – and remedy – the finance organization’s capital allocation deficiencies
Potential deficiencies can impede a company’s ability to fund a spending portfolio that is in line with strategic direction and increases shareholder value.

Secrets of the activist manager
Activist investors have their megaphones. But insiders have a more powerful tool for creating value: deep knowledge of their business and customers.

Thoughts on calculating discounts for lack of marketability (DLOMs)
A contingent claims analysis (CCA) is one recommended way of valuing non-marketable securities in a complex capital structure. In this article, we describe a method for calculating DLOMs that differ based on a security’s unique volatility.

Risk-minimizing and insurance hedging
The complex valuation and financial reporting challenges in each of these four hedging cases is analyzed and illustrated with examples:

  • Variance-minimizing hedging with forward or futures contracts
  • Insurance hedging with options
  • Variance-minimizing hedging with options
  • Insurance hedging with futures

Market’s reaction to accelerated share repurchase announcements
Accelerated share repurchase (ASR) programs can help improve capital structure or tax treatment by shifting the timing of cash payments to shareholders. A better understanding of the market’s reaction to ASR announcements can help guide decisions regarding the use of this strategy.

Cross-sector valuation: What companies should consider when acquiring tech targets
As companies in competitive industries continue transforming themselves through technology-focused acquisitions, unique valuation issues can challenge deal success. Analyzing the sources of competitive advantage can play a key role in informing M&A decisions and can help increase shareholder returns. Using the most appropriate valuation method and avoiding common pitfalls and valuation errors can be the difference between a successful or failed transaction.

Valuing Warrants: Dilution and Down-Round Price Protection
This paper, originally published in Business Valuation Review, provides technical guidance on two warrant valuation topics: dilution and down-round price protection. It includes detailed examples and analysis illustrating the mechanics of complex approaches to valuing warrants.

The valuation profession - At a crossroads

Currently, there is no single professional framework governing the valuation profession in terms of conduct, education, credentialing, and performance. This PwC point of view discusses how creating a professional framework would reduce expectation gaps between the profession and management, auditors, standard setters, and regulators. Having a professional valuation framework will also help inspire confidence in the quality and consistency of the work performed.

Global valuation standards - Charting a course for the future
This PwC point of view discusses how the valuation profession could benefit from establishing a primary technical voice to issue high-quality standards for financial reporting that can enhance quality, promote consistency in practice, and advance the brand of the profession as a whole.

Brands: What’s in a name?
This publication provides important guidance for consumer products companies to consider when planning a brand-rich transaction. It explains how keeping a careful eye on the valuation and purchase accounting issues can provide better insight into the potential accretive or dilutive impact of a deal, help improve and streamline post-deal accounting and even reduce the risk of impairment in some cases.

Entertainment & Media asset valuation in the Digital Age
PwC believes that the traditional methods employed to value intangible E&M assets -- while still valid -- may ultimately need to evolve in the interest of improved reporting. This new publication discusses some timely valuation issues for E&M companies.