Research Topic
Company Valuations
Overview
Company valuation is the key factor in any software merger and acquisition discussion and essential to securing funding. Using MGI Research’s proprietary EVM (empirical valuation model) in addition to traditional models, a company’s market valuation can be determined—giving management and the board of directors confidence in their next move—whether it’s fundraising, preparing an IPO, or engaging with a strategic partner. For institutional investors, tech valuations can be confounding, and identifying under and over-valued opportunities in swift moving markets is a challenge.
Capabilities
MGI Research’s company valuation research is published quarterly and also produced on-demand.
The quarterly valuation analysis of all publicly listed software companies uses a proprietary approach to identify which factor(s) is predominately determinant in driving public market valuations (e.g., short-term growth, mid to long-term EBITDA, etc.).
Clients can also commission valuation analysis of a private company. The results are used in a variety of contexts including setting company objectives, fundraising, and M&A transactions. Management teams use the valuation analysis to optimize sales and profitability targets, justify deals, and provide a guide to building long-term shareholder value in the business.
- What factors are driving public and private valuations today?
- How are competitors and best-in-class companies valued currently?
- What are the minimum thresholds for super-premium valuations?
- What are current M&A valuations?
- Profitability versus growth—what is the right balance to optimize valuation and viability?
- Which tech companies are under/over-valued?
- What is the shortlist of attractive candidates?
- Where is the hidden value in tech stocks?
- What is a realistic valuation for a private company?