Financial instruments, whether traditional or virtual, are contracts that carry monetary value. They may be equity-based, reflecting ownership, or debt-based, reflecting loans and credit. Many of them have no quoted price, so their fair value must be estimated with models. Valtech Valuation provides independent financial instrument, derivative and virtual asset valuations for corporations, investors and financial institutions, prepared for financial reporting, transactions and risk management.

Financial Instruments We Value

  • Options, warrants and real options
  • Forward and futures contracts
  • Interest rate, currency and other swaps
  • Convertible bonds and convertible preference shares
  • Pre-IPO share options and employee stock options
  • Restricted shares and lock-up discounts
  • Contingent consideration and contingent payments
  • Financial guarantees
  • Unlisted debt and loans, including credit analysis modelling
  • Expected Credit Loss (ECL) modelling with customised rating models

Fair Value Measurement Under IFRS 9 and IFRS 13

Under IFRS 9 / HKFRS 9, many financial assets and liabilities are measured at fair value, and IFRS 13 requires each measurement to be classified in the Level 1, 2 or 3 hierarchy based on the observability of inputs. Level 3 instruments rely on unobservable inputs and come under the closest scrutiny from auditors. We document the model, inputs and sensitivity analysis needed to support them.

Valuation Models

  • Black-Scholes-Merton for vanilla options and warrants
  • Binomial and trinomial lattice models for early-exercise, callable and puttable features
  • Monte Carlo simulation for path-dependent payoffs, market conditions and complex earn-outs
  • Discounted cash flow with credit spreads for bonds, loans and guarantees
  • Option-pricing and finite-difference methods for discounts for lack of marketability

Convertible Bond Valuation

A convertible bond is a debt security that the holder can convert into equity on predefined terms. Its value has two parts: a straight debt component, discounted at a rate reflecting the issuer's credit risk, and an embedded conversion option. We separate and value each part. This supports the split between liability and equity or derivative components, and fair value through profit or loss measurement.

Employee Stock Option (ESO) and Share-Based Payment Valuation

Companies grant employee stock options and share awards to retain and incentivise talent, often as part of a pre-IPO incentive programme. Under IFRS 2 / HKFRS 2 Share-based Payment, the grant-date fair value is expensed over the vesting period. We model vesting conditions, expected exercise behaviour, volatility and dividend assumptions to produce a supportable expense.

Virtual Asset Contracts

We also value contracts linked to digital assets and Web3 businesses, including token warrants, SAFTs and investments in token-issuing entities. The models account for liquidity, lock-up periods and the volatility characteristics of the underlying assets.

Trusted by Public Companies and Multinational Corporations

Valtech Valuation is an independent valuation and transaction advisory firm with offices in Hong Kong and Singapore. Our clients range from Fortune 500 companies and publicly listed groups to private equity funds, family offices and high-growth startups, with engagements across Hong Kong, Mainland China, Singapore, Southeast Asia, the Middle East and the United States. Listed companies and multinationals rely on our reports for financial reporting, regulatory disclosure and cross-border transactions, where the valuation must stand up to auditors, regulators and investors.

Why Appoint Valtech Valuation for Reliable International Valuation Services

  • Independent and defensible conclusions – objective, well-documented reports prepared to withstand audit, regulatory and investor scrutiny.
  • ISO 9001 certified quality management – a certified quality process for consistent, reliable results on every engagement.
  • Proven with listed companies and multinationals – experience supporting publicly listed groups, US-listed firms and Fortune 500 companies on financial reporting and transaction valuations.
  • International reach, local expertise – offices in Hong Kong and Singapore serving clients across Asia, the Middle East and the United States, including cross-border assignments.
  • Technology-enabled valuation – data analytics, business intelligence tools and proprietary applications improve transparency and efficiency.
  • Quantitative depth – CFA, FRM and PhD-qualified professionals build and review complex derivative and credit models.

Professional Credentials of Valtech's Team

  • PhD holders
  • Certified Public Accountants – CPA (HKICPA)
  • Chartered Financial Analysts – CFA
  • Financial Risk Managers – FRM (GARP)
  • Chartered Valuation Surveyors – MRICS (Royal Institution of Chartered Surveyors)
  • Accredited in Business Valuation – ABV (AICPA)
  • Certified Valuation Analysts – CVA (Singapore)
  • Certified Public Valuers – CPV (China Appraisal Society)

Request a Financial Instrument Valuation Proposal

Send us the term sheet or contract and your valuation date, and we will prepare a tailored proposal.

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