Precision in assumptions. Openness about outcomes.
A valuation range can explain more than a single apparently precise target.
01 / MCM
Models make assumptions visible.
A model is a structured representation of a possible development. It connects assumptions about growth, margins, investment and financing. Its value lies in making those connections understandable.
Numerical precision is not the same as certainty about the underlying assumptions.
02 / MCM
Examine sensitivities deliberately.
Not every assumption affects the result equally. Sensitivity analysis shows which changes matter most and where further research may be useful.
Combinations of assumptions should remain economically plausible. Growth, capital requirements and margins cannot be changed arbitrarily in isolation.
03 / MCM
Ranges as a basis for discussion.
Alternative scenarios illustrate how different developments might affect value. They do not replace a decision, but make its foundations more transparent.
A sound valuation process remains open to new information and records why the assessment changes.
Explore further
Broaden the perspective.
MCM
Company Valuation
Valuation connects business analysis with expectations for growth, cash flow and capital requirements.