As a Corporate Advisor in Illinois, Bilal Basrai spends much of his time providing valuation analysis for his many clients. This service, which uses statistical and collected data to evaluate the worth of an item, is crucial for those who are looking to invest. Before anyone can make a sound investment choice, they must fully understand what the asset or investment is valued at, or they risk losing money because of ignorance.
The process of valuation analysis is a fundamental job of a corporate advisor. When an asset or investment, often called a security, is evaluated it may be compared to another similar security, or to a group of securities. If this data is not available, then the security is examined historically to determine its financial course. This is most commonly the case with brand new products and services that have no legitimate comparison at the time.
To complete an accurate valuation analysis, the advisor must be able to collect the best data. This means that a study of past and current figures is necessary to then calculate a reasonable projection of the future value of the security. Certain metrics will help the advisor determine the value of an asset, such as price per earnings, price per sales, or price per book value.
Bilal Basrai also considers additional metrics, like the economic value added and the discounted cash flow related to the security. Enterprise value is also important when figuring valuation analysis. A keen eye for detail and the ability to juggle statistical data is important for this analytical job.