Macro-economic analysis
Assessment of different macroeconomic scenarios, including interest rate and inflation projections on business plans and models. Assessing the probability of particular economic risks crystalising and the likely impact on business operations. Strategies for mitigating this impact.
Micro-economic analysis
At a more project specific level, assessing the impact of local economic data on future cash flows that support investment decisions. This includes the interpretation of socio-economic data supporting demand forecasts, price levels and competitive threats, and the probability of changes to demand and supply assumptions and to pricing assumptions.
Cash flow and valuation models
Review of cash flow models and valuation models, including benchmark values, cash flow stress scenarios, interest rate and inflation assumptions, liquidity and market sentiment considerations, and value over time. Overlaying quantitative measures such as default and recovery with qualitative factors associated with particular corporate and government related sectors to give a more rounded approach to market value analysis.