Equity Valuation Services

Eton offers accurate and fast equity valuations for private equity firms, investors, high-net-worth individuals, and businesses of all sizes.

Our team of Big-4 trained consultants deliver detailed, understandable reports that stand up to scrutiny.

Trusted by 1,000s of Companies

Why Choose Eton as Your Equity Valuation Service Provider

Equity valuations are complex and nuanced.

There are numerous factors to consider: the company’s financial health, market conditions, growth potential, and operational efficiency.

An inaccurate valuation can lead to poor investment decisions, financial loss, and loss of investor confidence.

But choosing a professional equity valuation provider like Eton can protect you from these risks.

Since 2010, we have delivered 3000+ accurate and audit-defensible valuations for private equity firms, investors, high-net-worth individuals, and businesses of all sizes.

We understand that timely and accurate valuations are crucial for your investment decisions and strategic planning.

Our team of experienced Big-4 trained consultants can deliver valuations in as short as 10 days, and we offer on-going support whenever you need us. 

We also defend our valuations in court when needed.

Independence

Eton does not sell software. Its sole focus on valuation and valuation advisory ensures impartial, objective judgments, maintaining compliance with regulations and safe harbor protection.

Tailored Approach

Our team of experienced experts uses a combination of proven methods and proprietary tools to deliver data-driven valuations, considering each company's financial performance, financing history, market trends, and comparable public and private companies.

Unparalleled Expertise

Founded by securities lawyers from top law schools / law firms and staffed with finance professionals trained by the Big Four and other prominent financial services firms, Eton brings intellectual and quantitative rigor unmatched by others.

Proven Track Record

Since 2010, Eton has performed thousands of independent, audit-defensible valuations, establishing itself as a "go-to" valuation services firm for startups, private equity firms, and enterprises.

"As a former Gunderson lawyer, I co-founded Eton to bring the precision, efficiency, and the obsessive client service of corporate securities law to business valuation. I'm especially proud that our worldwide team of Big 4 trained CFAs has adopted that client service mantra wholeheartedly.

Our entire focus is on delivering audit-defensible, rigorous, and timely valuations without the inefficient back-and-forth of other firms. Client service is our religion. We always go the extra mile to overdeliver for every client."

Chris Walton, JD
President & CEO
Eton Venture Services
Previously at Gunderson Dettmer / Stanford Law

Our Equity Valuation Process

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FAQs

What is an equity valuation?

Equity valuation is the process of determining the fair market value of a company’s equity or shares.

This valuation is crucial for investment decisions, strategic planning, financial reporting, and mergers and acquisitions.

Several factors influence the valuation of a company’s equity:

  • Financial Health: This includes current revenue, profit margins, and cash flow, all of which provide insight into the company’s financial stability.
  • Market Conditions: Economic trends and industry performance can significantly impact the company’s market value.
  • Growth Potential: Future growth prospects, based on market position, product development, and expansion opportunities, play a critical role.
  • Operational Efficiency: The effectiveness of the company’s operations and management contributes to its overall value.
  • Risk Factors: Both internal and external risks, such as competition, regulatory changes, and market volatility, must be considered.

To determine the fair value of a company’s equity, valuators use several key methods, such as:

  • Discounted Cash Flow (DCF): Projects the company’s future cash flows and discounts them to present value using a discount rate.

  • Comparable Company Analysis (CCA): Compares the company’s valuation multiples (e.g., P/E ratio) with those of similar companies in the industry.

  • Precedent Transactions Analysis (PTA): Looks at recent transactions of similar companies to determine valuation multiples.

  • Asset-Based Valuation: Calculates the company’s net asset value by subtracting total liabilities from total assets.

There are various equity valuation methods used for different purposes.

For example, 409A valuations use these models for stock compensation and compliance issues, while venture capital valuations aim to determine how much a startup is worth when investors (like VCs) are deciding whether to invest.

It’s important to note that these valuations are typically performed by valuation experts (like Eton) with specialized knowledge and experience in the field.

Equity valuation and firm valuation are two distinct methods used to assess the value of a company, each with its own focus and purpose.

The key difference lies in their scope: equity valuation looks at the equity portion (focusing solely on the shareholders’ equity), while firm valuation accounts for both equity and debt, providing a complete picture of the company’s value.

Equity valuation is commonly used for stock market investments and assessing shareholder value, whereas firm valuation is essential for activities like mergers and acquisitions and strategic business planning.

Our equity valuation services take 10 days as standard. However, when needed, we can do it in as little as one day but an expedited timeline does come at a higher cost. 

Typically we ask for financial statements, business plans, details on any outstanding debt, information on market conditions, and any other relevant data that can impact the valuation.

Yes, Eton’s equity valuation reports are audit-defensible, providing detailed, clear, and reliable documentation that can withstand scrutiny from auditors, investors, and regulatory bodies.

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