Davy Corporate Finance is Ireland’s largest corporate finance adviser.
We work with domestic and international public, private, commercial and semi-state entities, combining innovative advice and proven execution skills, to provide a complete range of integrated corporate finance services.
Davy's Debt & Specialist Finance team is the largest in Ireland. We act for both borrowers and investors in the global debt markets.
We are active traders in all sovereign bonds and global credits, and are primary dealers of Irish government bonds.
Our Institutional Services are supported by innovative, timely and commercial ideas based on our knowledge and understanding of the companies we cover and the industries in which they operate.
For more than 85 years, Davy has been committed to serving charitable organisations.
Davy Charities offers comprehensive investment solutions across the Charity, Not-For-Profit, Endowment and Philanthropic investment landscape.
Davy has over 15 years' experience in the credit union market in Ireland, and can offer investment expertise and assistance in relation to regulatory and market developments.
Our dedicated Credit Unions team provides a choice of service offerings to meet the individual requirements of each Credit Union.
Davy offers a competitive share dealing service for Employee Share Option Plans (ESOP).
We have a highly qualified and experienced ESOP team dedicated to assisting members of company share plans. Services include Approved Profit Share Schemes, Employee Share Option Schemes, Restricted Stock Unit Schemes, and Save As You Earn Schemes.
One approach used is to apply average valuation multiples derived over multi-year periods, primarily with a view to smoothing cyclical effects.
Share-based multiples include:
Enterprise-based valuation multiples include:
As enterprise values include net financial liabilities and minority interests, these are then deducted to arrive at the residual equity value.
In the case of average earnings multiples, cognisance is given to the stage of the relevant industry cycle as it may not be appropriate to apply average multiples towards the peak or trough of a cycle. In such cases, earnings multiples prevailing at the corresponding stages of previous cycles may be used.
In the case of asset-based valuations, reported net assets generally provide a floor to a company's valuation. In many cases, however, company accounts can understate the underlying economic value of a company's assets, and a ratio such as return on invested capital to weighted average cost of capital (ROIC/WACC) may provide a more appropriate indicator of the book value multiple.
The ratings of similar companies may be taken into account in valuing shares, as indeed may average ratings for particular industry sectors. Such ratings are commonly used in analysts' sum-of-the-parts (SOTP) valuations.
In discounted cash-flow (DCF) models, a company's forecast future free cash-flows are discounted by its weighted WACC. Due to the uncertainties involved in forecasting long-term cash-flows, analysts use a number of different DCF models.
In some instances, other valuation metrics may be used. For instance, enterprise value per tonne of installed capacity may be used in capital-intensive sectors or in the earlier stages of a company's development.