Company Understanding
Members examine the business model, financial statements, market context and the key drivers of future performance.
How SVN Works
Valuation through exchange and practice
SVN brings students together to discuss valuation questions, compare methods and conduct their own valuations of selected companies. A shared Excel model helps turn assumptions into transparent, reviewable results.
Working Approach
- Understand the CompanyBusiness model, financial statements and value drivers
- Select the MethodsChoose approaches that fit the company and valuation question
- Build the ValuationTranslate assumptions into a structured Excel-based model
- Discuss & ReviewCompare results and challenge the underlying reasoning
Collaboration Process
From a company question to a reviewed valuation
SVN follows a flexible, method-based approach. Members work across valuation methods and select the most suitable approach for each company, data set and analytical question.
Method Selection
DCF, multiples, net asset value and the income approach are compared and selected based on the case.
Excel Modeling
Assumptions, forecasts, valuation outputs and sensitivities are structured in a shared Excel-based model.
Peer Discussion
Members present their reasoning, challenge assumptions and document the strengths and limits of each result.
Shared Foundation
A common language for valuation
Before comparing valuation outputs, members build a shared understanding of the financial and analytical foundations behind them.
Financial Statements
Understanding how accounting mechanics, normalization and financial performance shape valuation inputs.
Forecasting & Value Drivers
Connecting revenue, margins, reinvestment and risk assumptions to a coherent view of future performance.
Corporate Finance
Building intuition around capital structure, return requirements, enterprise value and equity value.
Model Logic & Sensitivities
Documenting assumptions clearly, testing key variables and keeping models transparent and reviewable.
Valuation Methods
Different methods for different valuation questions
Members do not follow one single formula. They learn when a method is useful, which assumptions drive it and how its output compares with alternative approaches.
01Intrinsic value
Discounted Cash Flow
Values a company based on the present value of expected future cash flows and a terminal value.
- Operating forecast and free cash flow
- WACC and terminal value
- Scenario and sensitivity analysis
02Market-based
Market Multiples
Derives a valuation range by comparing the company with relevant listed peers or transaction benchmarks.
- Peer-group selection and normalization
- EV/EBITDA, EV/EBIT and P/E
- Enterprise-to-equity value bridge
03Asset-based
Net Asset Value
Assesses value by estimating the market value of individual assets and deducting relevant liabilities.
- Asset-by-asset valuation
- Hidden reserves and liabilities
- Useful for asset-heavy companies and holdings
04Earnings-based
Income Approach
The German Ertragswertverfahren capitalizes sustainable future earnings using an appropriate capitalization rate.
- Sustainable earnings and adjustments
- Capitalization rate and growth
- Comparison with cash-flow-based approaches
Method choice is part of the analysis.
The company, available information and purpose of the valuation determine which methods are appropriate and how their results should be interpreted.
Shared Valuation Tool
An Excel model that makes assumptions visible
Members use and further develop a shared Excel-based valuation model. It creates a common structure for company data, forecasts, valuation outputs and discussion.
- Structured inputsHistorical financials, operating assumptions and capital structure
- DCF & multiplesIntegrated valuation modules and enterprise-to-equity value reconciliation
- SensitivitiesTransparent ranges for key assumptions such as WACC, growth and margins
- Case-specific developmentAdditional logic for NAV or the income approach can be incorporated where relevant
InputsFinancialsForecastDCFMultiplesSensitivity
ModuleAssumptionFormulaReview
ForecastRevenue & marginsOperating driversLinked
DCFWACC & terminal growthPV of future cash flowsTested
MultiplesPeer groupEV / EBITDA & P/ECompared
SensitivityKey variablesValuation rangeReviewed
Model principleClear inputs → transparent logic → reviewable output
Company Valuations
Members apply the methods and challenge each other’s assumptions
The goal is not to produce an unquestioned target price. It is to understand how a valuation is built, why different methods lead to different results and where uncertainty remains.
A typical valuation includes
- Business model and market overview
- Financial statement and value-driver analysis
- Selection and application of suitable methods
- Valuation range, sensitivities and documented assumptions
How members collaborate
- Divide research and model-building tasks
- Discuss assumptions and alternative scenarios
- Compare outputs across valuation methods
- Review model logic and record key takeaways
Next Step
Interested in valuing companies with us?
Learn more about membership, current openings and what joining SVN looks like in practice.