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Range Chart Sample Data

The document discusses range charts, which provide a concise visualization of valuation ranges for a company using different valuation tools. The table shows valuation data from 5 assumptions using 7 tools, ranging from pessimistic to optimistic. A range chart neatly summarizes this, showing the minimum, maximum and range for each valuation tool on a single chart. This easy-to-interpret format allows analysts to quickly represent complex valuation data to clients.

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Sameerbaskar
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0% found this document useful (0 votes)
75 views1 page

Range Chart Sample Data

The document discusses range charts, which provide a concise visualization of valuation ranges for a company using different valuation tools. The table shows valuation data from 5 assumptions using 7 tools, ranging from pessimistic to optimistic. A range chart neatly summarizes this, showing the minimum, maximum and range for each valuation tool on a single chart. This easy-to-interpret format allows analysts to quickly represent complex valuation data to clients.

Uploaded by

Sameerbaskar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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RANGE CHARTS (VERSION 1)

RANGE CHART SAMPLE DATA


DCF
Public Comp
Asset Repl
M&A Comp
Repl Cost
Sum of Parts
12-mnt High Low

Assumption 1 Assumption 2 Assumption 3 Assumption 4 Assumption 5


30
33
36
42
45
28
46
29
40
35
42
38
36
29
26
20
39
35
39
40
48
35
50
39
43
32
33
30
37
29
26
39
32
24
35

Minimum

Range

30
28
26
20
35
29
24

15
18
16
20
15
8
15

The table above provides the valuation summary of a company using different valuation tools. The assumptions
used vary from being pessimistic to optimistic valuations. The challenge of sending such data directly to the clients
is that they may not be very happy to see this table. More than that, they may not have time to do the
interpretation. Hence, as an analyst, it is of utmost importance that we should be able to represent the data in a
standardized, easy to read format.
If we make the graph shown above, then it is very easy to interpret

M&A comp method leads to a Minimum valuation of Rs20/Replacement Cost method leads to the maximum valuation of Rs50/If we use DCF, the pessimistic and aggressive valuation will be Rs30/- and Rs45/-

The above data can be neatly summarized in the form of range charts as show below

WHAT ARE RANGE CHARTS?


$60

XYZ C orp. Share Price ($)

$50
$40
$30
$20
$10
$0
DC F

Public
C omp

Asset Repl

M&A
C omp

Repl C ost

Sum of
Parts

12-mnt
High Low

www.educorporatebridge.com

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