Understanding the economics of valuation is essential in all but the simplest of contexts. A proper grounding in valuation theories lets an expert decide whether the best methodology for a given case involves analytic formulas based on the values of other assets from the same company or portfolio, estimation of the company's future cash flows or comparisons to valuations of other assets.
As a pioneer in the field of asset valuation, NERA uses innovative techniques to measure value in real-world scenarios. Our valuations use real options, probability-weighted and dynamic cash flow models, the stock and debt approach to real property appraisal, and event studies to measure lost profits. Our experience in a variety of asset classes allows us to quickly assess market specifics and the impact of market economics on market value.
The use of advanced techniques combining economics, finance, statistics, and econometrics contribute to a result that extends well beyond traditional approaches to valuation, especially in cases where historical data and other valuation benchmarks are either unavailable or considered inadequate.
