privateMetrics® Comparables
Advanced Comparables inputs for private equity investments that mitigate the issues of small transaction samples, stale Net Asset Values (NAVs) and facilitate investment due diligence and the nowCasting of valuations on a monthly basis. Reliable and supported data produced by a dedicated team.
Strength in Numbers
ARE YOU USING THE RIGHT Data?
Reported multiples are..
- not robust at the sector level.
- not actual comparables controlling for geography and asset risk profile.
- the source of large valuation errors if used as is.
- 90% model-based (using a range of different models and assumptions) i.e., only 10% of the data come from actual transactions.
Conclusion: if raw reported data are not good enough, and most reported private market data is the product of a model, ergo it is essential to have a robust model and the right data!
Using privatemetrics data
As an input for asset valuation and validationInvestors and valuers who need a valuation starting point or anchor can use privateMetrics to find the most up to date level of valuations for private companies of any kind. For a given segment and geography, they can access estimates of EBITDA multiples implied by current transactions and adjust them for the risk factor profile of any asset under consideration. From this Market Valuation Anchor (MVA), various asset or deal-level, adjustments can be also made.
- Investors looking to review or question reported valuations can utilize privateMetrics to calculate a price multiple for the relevant segment, geography, and risk profile. This method mirrors a valuer's logic, providing a robust comparison. The multiple provided by privateMetrics, based on hundreds of data points, is a true comparable, closely matching the profile of the asset under review and offering the most reliable benchmark available.
- Download complete use case files including a set-by-step description of the methodology and data and a working spreadsheet showcasing the use of privteMetrics in infrastructure project NAV evaluation using DCF.Download the Use Case Files
As a check on the level of market prices
- Investors engaged in acquisition or divestiture activities within evergreen funds or secondary markets can employ privateMetrics to accurately assess the average market pricing with high robustness and granularity. This tool enables them to refine their bid prices strategically and substantiate the variance between the average market price and the specific bid-ask spread of a transaction.
As a NAV nowCasting tool
- Investors requiring more frequent updates to Net Asset Value (NAV) estimates than the typical reporting intervals can leverage privateMetrics for "nowCasting" portfolio values. This process utilizes the month-on-month valuation changes of a benchmark that represents the average progression of private market prices for specific segments and risk profiles. This allows for timely and precise adjustments to NAV estimations and avoid having to make weak assumptions about the correlations between public and private markets over time.
A WEALTH OF private equity VALUATION DATA
PrivateMetrics valuation data accurately reflect the market and serve as a reliable benchmark for valuing individual assets based on specific segments, geographical locations, and risk profiles. While this data doesn't provide an exact price for an individual asset, it offers an essential systematic starting point for evaluating private equity investments as of a particular date. From this benchmark, specific adjustments can be made to the asset's initial valuation, potentially altering the final price considerably. These adjustments account for the unique characteristics of each asset's value. Thanks to a very large dataset of shadow prices, privateMetrics allows slicing and dicing valuation multiples to get a granular yet robust valuation starting point.
