When using Valutico's Qualitative Assessment, you can adjust a number of Factors to create a discount for your trading multiples - such as the size, leverage, or management quality. Each of these has a different weight, ranging from 1% to 35%.
We have determined the weightings of the qualitative factors on the extent to which each of these factors can impact the company (i.e., the size of the company is weighted more highly than the currency risk). The weightings are based on the opinions of numerous valuation experts and therefore represent best practices from the perspective of practitioners.
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We are aware our qualitative assessment is a necessary simplification and not every user wants it in every context (e.g. it is not relevant for the valuation of large listed companies), so we give the user the possibility to overwrite the results of this model.
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Please note that most regulatory valuation approaches (such as IDW S1 or KFS BW1) do not accept individual risk adjustments, in which case we would recommend continuing by skipping this assessment. You can also skip the assessment for any other reason.
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If you decide you would like to add it to your Valuation after skipping, just click the Qualitative Assessment tab on the top of the page to return to this section.