In the Football Field chart within the Valuation module, the grey bar (also referred to as the grey zone or shaded section) spans across all currently selected valuation methodologies. This grey bar represents the concluded Valuation Range, the estimated range within which the company's value is expected to fall.
How Is the Valuation Range Calculated?
The Valuation Range takes all currently active Valuation methods i.e., all methods currently displayed in the Football Field chart, into consideration and applies the following methodology:
Valuation Method Weightings
Entity, Equity, and LBO methods are weighted at 1.0
Trading, Transaction, and Venture Capital methods are weighted at 0.5
A weighted average of all selected valuation methods is calculated to determine the midpoint of the Valuation Range.
The minimum and maximum boundaries of the grey bar are defined as:
Midpoint ± 1 weighted standard deviation of all valuation methods.
This means the more consistent your selected valuation methods are, the narrower the Valuation Range will be—and the more they vary, the wider the range becomes.
How Can the Valuation Range Be Adjusted?
You can manually override the automatically calculated Valuation Range:
Go to the Parameters menu in the top-right corner of the Valuation Module.
Under "Change Parameters", you’ll find the option to adjust the Valuation Range values directly.
This allows you to:
Reflect judgment-based adjustments
Incorporate external benchmarks or expert inputs
Narrow or widen the range as needed for your final output
Learn more on How to Change the Parameters of the Valuation.