India Valuation Guide

An integral part of the valuation process is having sufficient data to make proper judgements on comparability and risk. The KNAV team has developed this India Valuation Guide of public entities in India, which will be helpful to not only valuation analysts, but other professionals involved with investment analysis as well. The Guide provides data on the financial performance of companies within 17 different industries which comprise a substantial portion of the Indian economy. The data provided in the Guide will be helpful to analysts working with companies within these 17 sectors, benchmark financial performance and risk among their publicly traded peers.

India has one of the fastest growing economies in the world. According to the World Bank, India’s has emerged as a “global player” as it continues to integrate into the world’s economy. Because of its emergence as a global player in the world economy, companies within India have expanded rapidly as well. For example, the “Nifty Fifty”, a weighted average of the market capitalization of 50 of the largest companies within India has grown almost 70% in the last five years. India’s increasing importance in the world economy requires proper data to assist with valuations.

International Valuation Standards (“IVS”) requires proper evidence to support the judgement with a valuation . IVS 20.2 notes, “sufficient evidence must be assembled by means such as inspection, inquiry, computation and analysis to ensure that the valuation is properly supported.”

The KNAV India Valuation Guide provides not only ratios on returns, activity, profitability and capital expenditures, but also price multiples and cost of capital data on company’s various industries. The way the data is presented by breaking out to high, lows, averages and different percentiles is extremely helpful “evidence” for valuation analysts in measuring the value companies in India.

The KNAV team has compiled information in one publication with indications of comparability, risk and value. The KNAV India Valuation Guide is a must have for anyone performing valuations of companies in India.

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