What are some example use cases for your Valuation Data & Tools?

Answer

Amongst our clients we noticed 3 key use case themes for our Valuation Data & Tools product:

1. Using our valuation data as an input for asset valuation and validation.

   • Investors and valuers needing a valuation starting point or anchor have used infraMetrics to find the most up to date level of risk premia or discount rates for infrastructure companies of any kind. For a given segment and geography, one can view the level of discount rates i.e., expected returns, implied by current transactions and adjust this number for the risk factor profile of the asset under consideration.  From this Market Valuation Anchor (MVA), different asset or deal-level adjustments can be made.

   • Investors needing to to review or challenge reported valuations have used infraMetrics to derive a price multiple for the relevant segment, geography and risk profile following the same logic as a valuer, to establish a robust comparable. The multiple returned by infraMetrics is a true comparable since it has the same profile than the asset being reviewed and is based on hundreds of data points, therefore being the most robust available.

2. Using our valuation data and tools as a check on the level market prices.

   • Investors considering acquisitions or exits have used infraMetrics to gauge the average level of market prices at a high level of robustness and granularity. Our clients have thereafter adjusted bid prices, using the distance between the average market price and the bid-ask of a given transaction.

3.  Using our valuation data as a NOWCasting tool.

   • Investors needing to estimate NAV changes at a higher frequency than reported values use infraMetrics to "nowCast" the value of their portfolio, using the month-on-month change of value of a comparable to represent the average change in the market resulting from changes in cash flows, yield curve and risk premia.