Determining the Fair Value of Unicorn Securities

The valuation of illiquid, hard-to-value securities in unicorns is complicated and impacted by many factors, including the quality of data, availability of information, use of appropriate valuation techniques, and amount of liquidity. This valuation complexity has created an environment of heightened skepticism and scrutiny around these pre-IPO company valuations. 

In this paper, we will illustrate examples of divergent valuation estimates for select unicorns across managers, highlight sources of valuation complexity, and summarize useful valuation concepts to consider when valuing equity interests in a unicorn.

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Contacts

Rittik Chakrabarti
Director
Portfolio Valuation &
Fund Advisory Services

Cindy Ma, Ph.D., CFA
Managing Director
Global Head of Portfolio
Valuation & Fund Advisory Services

Terence Tchen
Managing Director
Portfolio Valuation & Fund Advisory Services

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