Valuation Techniques

---
name: financial-analysis-valuation-techniques
description: 'Sub-skill of financial-analysis: Valuation Techniques (+2).'
version: 1.0.0
category: engineering
type: reference
scripts_exempt: true
---

# Valuation Techniques (+2)

## Valuation Techniques


- **Discounted Cash Flow (DCF)**: FCFF, FCFE, DDM, APV
- **Relative Valuation**: P/E, EV/EBITDA, P/B, PEG, EV/Sales, industry multiples
- **Asset-Based Valuation**: Book value, liquidation value, replacement cost, sum-of-parts

## Risk Metrics


- **Portfolio Risk**: Standard deviation, Sharpe ratio, Information ratio, Sortino ratio, maximum drawdown, Calmar ratio
- **Value at Risk (VaR)**: Historical simulation, variance-covariance, Monte Carlo simulation
- **Credit Metrics**: Probability of default (PD), Loss given default (LGD), Expected loss (EL), Credit value adjustment (CVA)

## Performance Analysis


- **Return Metrics**: TWR (time-weighted return), MWR (money-weighted return), IRR, XIRR
- **Risk-Adjusted Returns**: Sharpe ratio, Treynor ratio, Jensen's alpha, Information ratio, M-squared, Omega ratio