Three methods. One defensible answer.

IVS 105: the three valuation approaches

The IVSC sets out the three approaches every credible business valuation must consider: the market approach (CCA, PTA), the income approach (DCF) and the asset approach (book or fair-value of net assets). IVS 105 requires the valuer to consider all three and disclose why any are excluded.

Our Comprehensive tier applies all three (DCF + CCA + PTA) and references the asset approach as a floor. Unlike property surveying (RICS), the UK has no chartered credential specific to company valuation; the recognised standard is IVSC-alignment plus a named, qualified signatory (ACCA, ICAEW, CFA or equivalent). Every ValuCap report is signed by the Valuation Consultant (ACCA, FMVA, MBA) for exactly this reason.

Aligned with HMRC SVM and ICAEW TECH 03/19

For UK tax use cases, our calculation methodology aligns with the practice that HMRC’s Shares & Assets Valuation team reads:

DCF, CCA and PTA: applied in parallel

Three ranges, one credible value zone

Each method produces a range, not a point. The football-field chart stacks those ranges so the overlap, where every method agrees, becomes visible. We weight the methods, conclude a single equity value inside that overlap, and disclose the weighting in the report.

A curated UK peer and precedent transactions database

ValuCap maintains an internal database of UK-listed peer comparables and M&A precedent transactions, organised by sector and refreshed quarterly. Every engagement captures an audit snapshot of the specific peers and precedents used: retained alongside the report so the data set can be reproduced exactly, years later.