Valuation is the process of estimating what a company, individual security or related derivative instrument is worth. Relative valuation refers to assessing worth on the basis of observed market values of comparable assets. Absolute valuation refers to assessing worth on the basis of discounted expected future cash flows.

WEFA, LLC Principals have developed proprietary valuation models that capture multi-stage resolution of cash flow uncertainties. The models produce valuations incorporating pure discounted expected cash flows and/or discounted future exit values based on a comparable assets approach. These models are extremely flexible. For example, these models can capture the valuation impacts of Pass/Fail milestones regarding regulatory approvals such as Phase 1, Phase 2 and Phase 3 FDA Trials applicable for Life-Sciences Start-up Valuations. 

Related Life-Sciences Start-up Valuation Work

St. Renatus LLC, Fort Collins, CO

Guided Therapeutics, Inc., Norcross, GA

Related Publications

“Peer Pressure: Industry Group Impacts on Stock Valuation Precision and Contrarian Strategy Performance,” Journal of Portfolio Management, 32 (3), 80-91, Spring 2006