Skill Profile
Valuation
"Estimating the worth of an asset, business or security using recognised financial methods and market evidence to support a decision."
YOUR SKILLS
Problems This Skill Solves
- Setting a defensible price for a business sale, acquisition or investment
- Supporting fundraising or IPO decisions with a credible valuation
- Resolving disputes over what an asset or company is worth
- Informing whether an investment is over- or under-priced relative to fundamentals
Valuation produces one correct number.
Valuation is a range based on assumptions — different reasonable inputs give different reasonable answers.
Valuation is just plugging numbers into a formula.
Most of the skill is judging which assumptions and comparables are actually appropriate.
Research & Outlook
AI tools are automating data-gathering and first-draft model-building, shifting valuation work towards assumption-setting, scenario analysis and communicating judgement to decision-makers.
See This Skill In Action
Watch a professional demonstrate Valuation in a real working environment — what it looks like, how it's applied, and why it matters.
Finance / Investment
Valuation
Also Known As
Growth Path
Can build a basic DCF or multiples valuation from provided assumptions.
Independently values a business or asset using multiple methods and defends the assumptions used.
Leads valuations for high-value transactions such as M&A and IPOs, and is relied on for contested or complex valuation judgement.
How to Practise
- 1.Build a DCF valuation model for a public company from its published accounts
- 2.Compare your valuation against analyst consensus and reconcile the differences
- 3.Complete a CFA-aligned valuation module
- 4.Practise comparable-company (multiples) analysis on a sector
How to Prove
- ·Hold or be working towards a CFA qualification, or ACA/ACCA with valuation experience
- ·Produce a full valuation model as a portfolio piece
- ·Demonstrate a valuation that was used in a real transaction or investment decision