Valorem is a tool purpose-built to help you determine the valuations of both public and private companies. It simplifies the input process and has advanced calculations and processing built in to help ensure you have the most accurate projections and calculations. If you can do it in a spreadsheet, you should be able to do it better and safer in Valorem.
Specific questions and guides on how to do perform certain actions are listed below. If your question isn't answered here, please contact us using the form below.
Discount Rates
A discount rate is the interest rate used to determine the present value of future cash flows. It reflects the rate of return that investors require to invest in a particular asset or project. It's one of the most fundamental concepts in valuation because it accounts for time value of money and risk. The fundamental principle is that money today is worth more than the same amount in the future, both because of its earning potential and uncertainty about actually receiving those future payments.
To choose a discount rate in Valorem, go to the Valuation or Venture tab and click on the settings/tune icon in the top right. From there view that opens up, you can choose a discount rate to use. Valorem has some guidelines and suggestions, but allows you to choose any discount rate you want.
Number Scales
By default, numbers are shown in thousands. To change what scale numbers are shown in, click on the <eye> icon in the top right and choose between Base, K (thousands), M (millions), and B (billions).
Scenarios
To set up different scenarios for a model, you can use the "Save Project As" feature to create a copy of the project. Modifications to the copy will not affect the original project/scenario.
Better support for multiple scenarios is planned for the future.