The Valuation service aims to assess the fair value of a company and consists of issuing a Valuation Report based on different methodologies, among which we select the most appropriate one to estimate the value of the business. The most common methods are:

• Valuation by the Discounted Cash Flow (DCF): This method estimates the value of the company based on its future cash generation obtained by the use of its tangible and intangible operational assets, discounted by a rate that represents the company’s intrinsic cost of capital;
• Valuation by Multiples of Publicly Traded Companies: The evaluation is based on the arithmetic mean of multiples of Net Revenue, EBITDA, Net profit, and other metrics of publicly traded companies that operate in the same industry segment;
• Valuation by Multiples of Precedent Transactions: The evaluation is based on the arithmetic mean of multiples of Net Revenue and EBITDA observed in precedent transactions in the same industry of the evaluated company;
• Accounting book value: The value of the company is determined based on the value of Net Equity as shown in the accounting balance of the closest date to the preparation of the Report;
• Evaluation by the Weighted Average of the Historical Share Price: The value of the company is determined based on the weighted average of the historical share price of publicly traded companies.

• The most used methodology among the presented above is the Discounted Cash Flow Method. As this method is the only one that captures profit growth perspectives, it ensures flexibility when measuring opportunities and competitive advantages, aside from reflecting the expected return due to the risks for the business, the industry, and the country.