Economic valuation is a process of analysis of various economic and market factors, attributing the value of a company, business and creating a reliable support for the conduct of negotiations.
In addition to the economic value, assets that depend on cash flow can be evaluated, such as: brand, patent, formulas, client list, concessions.
Investment decisions, profitability and the level of success of companies are based on these valuations.
The methodology used is discounted cash flow when the value of the company is defined by the cash flow of future revenues and expenses duly discounted to present value for an appropriate discount rate or through multiples.
The discount rate used is the WACC and are considered: macro and microeconomic analysis, inflation rates, leverage, growth rates, taxation impacts, working capital requirements, perpetuity analysis and results.