ASC 820 – Fair Value Measurement
& Portfolio Valuation
Hybrid Instrument
- Redeemable & Convertible Features
- Discretionary Dividends
- Puttable Options
- Preemptive Rights
- Future Conversion Price
Characteristics
- Liquidation Preference
- Cumulative & Non-Cumulative Dividends
- Compulsorily Convertible
- Optionally Convertible
- Callable Feature
Have more questions?
Conversion in Fixed Vs. Variable number of Equity Shares
Identification of hidden or embedded derivatives
Valuation Complexities
CCPS by Subsidiary with Put Option Written by Parents
Multiple options written by entities in same group
Calculation of Company Specific Risk Premium
Valuation Complexities
High growth potential
No revenues and operating losses
Uncertain call future potential
Primary asset = IP
Expected ESOP
Negative bottom line
Private entity (non-comparable listed entities)
How can we help you?
Creating Waterfall Approach
Beta Estimation for unlisted entities
Use of Option Valuation Models
Experience of valuing Securities worth $3000 million
Global Database for globally issued instruments
How can we help you?
Creating Waterfall Approach
Use of Option Valuation Models
Global Database for globally issued instruments
Beta Estimation for unlisted entities