1. Valuation of Companies

2. Definitions Valuation is the process of estimation of the value of goods (assets, liabilities, shares, enterprises, etc.)

3. Why are we valuing? to know what we possess to know at what price we should sell (or buy) to pay gift tax

4. Methods of valuation of companies Methods based on the value of assets possessed by a company Methods based on the profitability of a company Mixed methods Comparative methods

5. Methods based on the value of assets possessed by a company Book value (BV) Adjusted book value (Adj. BV)

6. Methods based on the profitability of a company Multiplier of profit (multiplier = inverse of the expected rate of return) Discounted Cashflow (DCF)

7. Mixed methods German method Swiss method

8. Comparative methods We compare us to our competitors: - P/BV - P/E

9. Advantages and disadvantages of the valuation methods

10. Homework Prepare your opinion about the value of shares of Takeda Ltd.