The practice
Tenth Square Valuation appraises and publishes the intrinsic value of companies listed on the Nepal Stock Exchange. Each appraisal starts from the business itself — how it earns, what it must reinvest, what can go wrong — and only then chooses a model. The model is fitted to the business, never the other way around.
How we value
- Banks and financial institutions — dividend discount and residual income models, because free cash flow is not a meaningful concept for a leveraged balance sheet that lends for a living.
- Hydropower — license-life discounted cash flow. A generation license has an end date, so we refuse the textbook perpetuity and value only the years the company will actually operate.
- Insurers and investment companies — justified price-to-book, single and two-stage, anchored to sustainable return on equity.
- Operating companies — free cash flow to firm and to equity, with growth assumptions that must survive a sanity check against history.
A valuation is an argument, not an oracle. Ours show their inputs, their sensitivities, and the range of outcomes around the point estimate.
The discipline
No single number leaves the desk alone. Every appraisal carries a sensitivity grid across discount rates and growth, and where the range of outcomes matters, a Monte Carlo distribution around the estimate. Judgment inputs — the cost of equity, the growth path — are chosen and defended by the analyst, never scraped from a feed. The result is a document you can disagree with intelligently, because every assumption is on the page.