Fair Value Studies

A Clear Vision for Your Business

ECH delivers comprehensive analysis covering sector dynamics, market share, management strategy, asset quality, and cash flows and income streams—whether for impairment testing, capital increases, or M&A transactions, or for any other purpose needed.

When companies are sold or restructured, assets’ fair values must be adjusted for impairment whenever market value falls below carrying value on the balance sheet. In today's landscape of complex financial structures and evolving regulatory requirements, precise financial modeling and robust risk management systems are essential.

ECH provides independent quantitative valuation and risk modeling services, including model design and objective risk assessments benchmarked against current regulatory standards.

Approved Valuation Approaches

Entity valuations are performed using methodologies established by the Egyptian Financial Regulatory Authority (FRA) (Decree issued January 18, 2017, and its amendments), Selection of the appropriate method depends on the valuation purpose and the target entity's operational status:

• Income Approach: Discounted Cash Flow (DCF) models based on projected earning capacity and risk-adjusted rates of return.
• Multiples Approach (Market Approach): Peer-group benchmarking against comparable public companies or recent transaction multiples.
• Adjusted Net Assets Approach (Asset Approach): Revaluation of assets and liabilities to reflect current fair market values.
• Sum-of-the-Parts (SOTP) Analysis: Segmented valuation for multi-business entities, combining distinct approaches per operational unit.
• Startups approach (VC approach): Designed for the newly established entities in the  pre-revenue generation phase.