Client Request
An energy trading company engaged our firm to determine the fair equity value of its business as it transitioned from historical refined products and aluminium trading activities into LNG and, more recently, pipeline gas trading. The client requested an independent valuation to support internal planning and strategic decision-making.
Project Overview
The engagement focused on assessing the Company’s value during a period of operational transition, characterised by changes in its product mix, evolving trading volumes and early-stage recovery of profitability. Our work required a balanced approach that captured both the Company’s future performance potential and the current market environment within which it operates.
Approach and Methodology
A combined valuation approach was adopted, using a Discounted Cash Flow (DCF) analysis alongside a Comparable Companies valuation. The DCF method incorporated forward-looking assumptions on revenue growth, margin stabilisation, etc. The Comparable Companies method utilized sector-specific trading multiples sourced from reputable global datasets. This dual-method approach ensured that the valuation reflected both fundamental business performance and relevant market benchmarks.
Scope and Execution
- Methodology: Applied a combined valuation approach using the Discounted Cash flow method and a Comparable Companies analysis based on sector-relevant P/E multiples.
- Deliverables: Prepared a full valuation report including financial projections, key assumptions, sensitivity analysis and a consolidated valuation range
- Delivery Time: Project completed within one month
Outcome
The client received a through and well-supported valuation that offered clarity on the Company’s financial position and strategic outlook. The management team expressed strong satisfaction with the depth of analysis and the transparency of our methodology.