A valuation analyst is a professional who performs analysis on potential investments to determine their worth. This may include analyzing financial statements, assessing economic conditions, and considering other factors that could affect the value of the investment.
Valuation Analyst job duties include:
- Research and analyze data to value assets
- Develop models to value assets
- Utilize market data to support asset valuations
- Understand and apply valuation methods including discounted cash flow analysis, comparable company analysis, and similar methods
- Prepare valuation reports for management or clients
- Assist in the development of presentations to communicate valuation results
- Respond to inquiries from clients or management regarding valuation results or methodology
- Stay up-to-date on developments in the field of valuation
- Participate in professional development opportunities to maintain and improve skills
Valuation Analyst Job Requirements
A valuation analyst is responsible for providing accurate and timely valuations of assets for a variety of purposes, including financial reporting, tax planning, and mergers and acquisitions. A bachelor's degree in business, finance, accounting, or economics is typically required for this position, as well as experience in financial analysis. Certification as a Chartered Financial Analyst (CFA) or Certified Public Accountant (CPA) is also preferred.
Valuation Analyst Skills
- Analytical skills
- Profit and loss analysis
- Financial analysis
- Finance
- Asset valuation
- Real estate valuation
- Business valuation
- Stock valuation
- Bond valuation
- Derivatives valuation
- Financial modeling
- Excel
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How to become a Valuation Analyst
A valuation analyst is a professional who appraises the value of assets. They typically work in the financial industry, but may also work in the real estate or insurance industries. Valuation analysts use their skills to help clients make informed decisions about buying, selling, or investing in assets.
Becoming a valuation analyst requires a strong foundation in mathematics and finance. A bachelor's degree in business administration or economics is typically required. Many valuation analysts also pursue professional certification through organizations such as the American Society of Appraisers or the Institute of Business Appraisers.
Valuation analysts must be able to effectively communicate their findings to clients. They must be able to explain complex financial concepts in plain language and tailor their advice to meet the specific needs of their clients.
The job outlook for valuation analysts is positive, with an expected growth rate of 11% between 2018 and 2028.* With the right education and training, you can become a valued member of the financial industry and help clients make sound investment decisions.
*https://www.bls.gov/ooh/business-and-financial/appraisers-and-assessors-of-real-estate.htm
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