Using Portfolio Companies Report for the Market Approach

Skip ahead to:

      1. The Problem: Calculating fair value accurately
      2. The Solution: Aumni Reports
      3. Video Tutorial: Valuations
      4. Accessing Data Points: Post Money Method
      5. Accessing Data Points: GPC and Guideline Transaction Methods
      6. List of Available Report Data Points for Valuations

I. The Problem

Calculating fair value accurately 

Measuring fair market value for reporting and audit is time-consuming and difficult, requiring robust methodologies, complex calculations, and defensible estimations that, if done incorrectly, could expose your firm to risk. Market Approach methods use prices and other relevant information generated by market transactions involving comparable assets, but in order to determine the fair market value of your holdings, you need comprehensive and accurate economic and ownership information that is often difficult to source, out-of-date, or simply missing.

II. The Solution

Aumni Reports

While Aumni is not considered a valuation software tool, you can use Aumni Data and Reports to power your Market Approach workflows. Aumni structures and validates hundreds of economic and ownership terms needed for calculations so that you can measure fair value and become audit-ready quickly and with confidence.

In this guide, you’ll learn how to source the right data points for each Market Approach method via Aumni’s Portfolio Companies Report, and how to apply that data to your other calculations to determine the fair market value of your holdings.

Aumni for Valuations Tutorial:

III. The Details

Accessing Data Points

For Post Money Valuation:

Instantly source post-money valuation data without any additional accounting work on your end. Select Portfolio Companies Report, and keyword search ‘Post Money Valuation’ or scroll down to Economic Metrics. You can also pull in ‘My Entry Post Money Valuation’ to get a sense of valuation changes over time.

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Drag and drop data points in the order that you wish, which will then be reflected in your report columns. 

Click View Report and easily copy-paste Post Money values from the platform or Export your report to .csv.

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Add Custom Fields to keep track of external data points or to input general notes. To learn more about how to create and use Custom Fields, read this article.

Then, save this report with a descriptive title and easily rerun it.

For the Guideline Public Company Method and Guideline Transaction Methods:

While the Guideline Public Company Method (GPC) and Guideline Transaction Method have different approaches to market comparability – public markets and recent mergers and acquisitions respectively – the Aumni data used to derive fair market value for your holdings is the same and is easy to source.

Go to your Portfolio Companies Reports and then keyword search or scroll to find the following data points needed for calculating value:

    • My Cost
    • Fully Diluted Share Count
    • My Total Shares

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For a comprehensive list of the significant Aumni data points available for valuation workflows, check out this part of the article.

Organize your Report columns by dragging and dropping the data points in your preferred order and then click View Report. For the Report view, you can add Custom Fields, Save, and Export your Report to .csv to quickly and easily measure fair value via the following calculations:

  • Company Market Value / Fully Diluted Share Count = Implied Price Per Share 
  • Implied Price Per Share x My Total Shares Held = Market Value of My Holdings 
  • Market Value of My Holdings / My Cost = Multiple of Invested Capital 

 

List of Available Report Data Points for Valuations

To get a comprehensive understanding of the available data points in Reports that are helpful in measuring fair market value, see the list below:

Fund Information

  • Fund
  • Implied Value of My holding 
  • Most Recent Transaction Date
  • My Currently Held Securities 

Portfolio Company Details

  • Founded
  • Industry Category
  • Portfolio Company 
  • Stage 
  • State of Notice

Capitalization 

  • Common Shares Outstanding
  • My FD% 
  • My Total Shares Held 

Economic Metrics

  • Multiple
  • My Cost 
  • My Realized Proceeds 
  • Post Money Valuation

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