Net Asset Value

Principles of valuation

The valuation of investments is carried out in accordance with the International Financial Reporting Standards (IFRS) as well as the International Private Equity and Venture Capital Valuation Guidelines of private equity umbrella organisations.

The valuations of investments are an essential component in determining the net asset value of Logan Capital AG. The net asset value per stock is calculated on the basis of the issued shares of the base capital divided by the equity capital on the effective reporting day.

Investments are converted to amounts that are considered as reasonable estimations of market value (Fair Value), although for such estimations it is not really possible to exercise the necessary caution. A value is labelled as fair value if it can be traded as an asset between well-informed, willing partners that operate independently of one another.

In principle, all investments are evaluated based on one of the following basic factors, taking into consideration the appropriate method for each individual case:

  • Stock price / Purchase price
  • Multipliers of comparable listed companies (e.g. EBIT multiple)
  • M&A multipliers or partial sales transactions of comparable companies

Listed shares

The investments are valued based on the final price of the relevant stock on the Xetra market. In individual cases, deductions are taken into consideration, for example when formal trade limitations (e.g. lock ups) are placed.

Stakes in non-listed companies

Stakes in non-listed companies are initially evaluated at their purchase price, and afterwards on the basis of the criteria listed above. In general, a profit multiplier or a cash-flow view are used as valuation criteria, unless this is inappropriate, such as for certain asset-related transactions.

In individual cases, the valuation of the investment can be reduced due to limited marketability, which is based on the probable time of sale of the investment, the influence of the company on this sale or the general market conditions. In determining the value of an investment, the percentage stake is calculated taking dilution through issued option certificates, options and profit-oriented mechanisms ("fully diluted") into consideration.

Assessment of the valuation process

Valuations are initially performed by the responsible investment professional. These valuations are then scrutinised by the Management Board and external financial auditors before they are presented to the Administrative Board for approval in the annual report or in the consolidated accounts.

 

Date NAV per share (OR) Number of shares*
12/31/2016 EUR 0.06 211.7 Mn.
12/31/2015 EUR 0.19 167.4 Mn.

 

*unter Abzug „Eigene Aktien“


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