Valuation Model for Financial Instruments
One of the biggest strengths of Valtech is our coverage of financial instruments. We are capable of valuing not only companies but also generic to complicated financial instruments. For examples, we can value financial contracts with multiple embedded options, SAFE, accumulators, swaps, crypto-linked contracts, securities with conversion features, fixed coupon notes. We can also value complicated instruments that can only be better valued by customised monte carlo simulation. Furthermore, we can also value distressed debt or bonds.
We have a team of CFAs capable of handling general valuation of financial instruments and construct customised models for specific financial instruments. For advanced financial instruments, we will involve specialist with quantitative background to input on necessary codes to achieve the valuation.
Many funds would prefer to have a greater level of involvement or perform more frequent internal valuation. Valtech can offer customised valuation model or programme for a specific financial instrument for client’s unlimited recalculation until their maturity.
We do not support or sell general valuation programme or SAAS for options, preference shares or convertible bonds etc. The main reason is that we do not believe a general valuation model can fulfil and fit well with many financial contracts having unique terms and conditions. Wrong application of generic option model for valuing complicated options can lead to huge error.
Q: Can I Use AI to Perform Valuation?
A: That’s possible. However, unless your case is really straightforward, based on the technology today, it is common you will see you cannot get the result you want.
Valuation of these complex financial instruments require current and historical financial data as of a specific data. This is not something available publicly. Proprietary organised and cleaned financial data and market data offered by leading financial data provider is required to complete the valuation process. Although you can ask AI to provide valuation direction, AI cannot complete the valuation process without those data.
Meanwhile AI may not be able to process various lengthy contracts, ensuring key terms are covered, and generate the valuation model.
About Valtech Valuation
Valtech Valuation is a professional valuation firm accredited with ISO-9001 in valuation advisory services. The firm is renowned for its expertise in advanced valuation techniques, customized valuation models, data-driven insights, and adherence to compliance and reporting standards. The firm has a solid track record in valuation advisory for listed companies, private equity, fund managers, and financial institutions. Valtech’s qualified team comprises members with PhDs, CPA (HKICPA), CFA, Chartered Valuation Surveyors of the Royal Institution of Chartered Surveyors, and valuers accredited with Business Valuation (ABV) by AICPA and CVA qualifications in Singapore. Valtech continues to expand into more markets by leveraging its valuation platform and recruiting local experts.