How to manage Valuations – ORCA's Knowledge Center

Overview

In this article, you learn about how ORCA enables you to use multiple values, such as:

Market value

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The price that an asset or a business can be sold for in the current market conditions

Book value

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The value of an asset or a business is recorded in the accounting books.

Tax value

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The value of an asset or a business is assessed by the tax authorities for taxation purposes. It may differ from the market value or the book value depending on the tax laws and regulations.

Insurance value

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The value of an asset or a business is estimated by an insurance company for insurance coverage. It is based on the replacement cost or the actual cash value of the asset or business in case of loss or damage.

Guide

How to add a new value

Open the “detail view” of your asset

Click on “Valuations”

Choose between Book Value, Market Value, Insurance Value, Tax Value or price-per-share valuation

Add the value(s)

Tip: Add the proofing file and date directly there

How to add negative valuations

Open the “detail view” of your asset

Click on “Valuations”

Choose between Book Value, Market Value, Insurance Value, Tax Value

Add the negative value eg. -100,000 USD

How to add the same amount for multiple types

Same as above, but just select all appropriate values

If tax and book value are the same, simply tick “tax and book value” before pressing “Add”

How to visualize the values in your structure

Blend in any type of value as information on the cards in the structure

Aggregate any type of value in the wealth panel

Evaluating how combining tracking Ownership and adding Valuations impact an Entity (e.g., Company) Owner(s) Wealth

Adding valuations to a company within ORCA influences the wealth held by its owner(s), especially when employing various methods to track ownership.

Different measurement options such as Net Asset Value (NAV) or absolute value, along with percentage (%) tracking and detailed share class information, present distinct approaches to understanding ownership stakes.

ORCA's adaptable nature ensures that users have the freedom to experiment with different tracking methods, providing an environment where modifications can be made without the risk of errors.

Click the Toggles ▶️ to reveal the examples

Ownership as Percentage (%) using Market value

Scenario: George and Kevin own a percentage of the company called “Unicorn Co”

Structure View showing ownership of George and Kevin in perspective of Unicorn Co:

Data Input:

Add the Company = “Unicorn Co”

Input a Market valuation of $150,000,000

Input: George owns 30% of Unicorn Co

Input: Kevin owns 20% of Unicorn Co

What does the data input look like in each tab

In the Valuations tab within the card Unicorn Co

In the Owners tab within the card Unicorn Co

*Note*: I did not input the Position Value. That was automatically calculated by providing the Company valuation and the Percentage (%) ownership of George and Kevin

Back to the Structure view:

Blend in the Values and Amount Type

Ownership as Percentage (%) using Price per share

Scenario: Dan and John own a percentage of the company called “Super Fast Tech Company”

Visit this page to learn about Share Classes

It is suggested to create the Company or Entity first and then add your custom Share Classes

Structure View: showing ownership of Dan and John in the perspective of Super Fast Tech Company:

Data Input:

Add the Company = “Super Fast Tech Company”

Input 100,000 shares,

Input Price per share = $150

Input: Dan owns 10% of “Super Fast Tech Company”

Input: John owns 1% of “Super Fast Tech Company”

What the data input look like in each tab

In the Valuations tab of Super Fast Tech Company

Price per share tab:

Total number of shares tab:

Owners tab within the card “Super Fast Tech Company”:

The only input provided was the percentage (10% + 1%), and the Position value was automatically calculated.

Clicking into Dan’s transaction:

Click into John’s Transaction:

Back to the Structure view:

Blending in the Values and Amount Type

Ownership using Shares

Scenario: Ben and Jackie own shares of the company called “The Greatest Start Up”

Visit this page to learn about Share Classes.

It is suggested to create the Company or Entity first and then add your custom Share Classes.

Structure View: showing ownership of Ben and Jackie in the perspective of The Greatest Start Up:

Data Input:

Add the Company = “The Greatest Start Up”

Input the types of Share Classes (A, B, C)

Input the total number of shares for each Share Class

Input price per share for each Share Class

Then proceed to input the share ownership amounts of Ben and Jackie

Input: Ben owns 100 Class-C shares of “The Greatest Start Up”

Input: Jackie owns 200 Class-A shares of “The Greatest Start Up”

What the data input look like in each tab

In the Valuations tab of The Greatest Start Up

Share classes Tab:

Added the Share Classes (A, B, C)

Total number of shares:

Input the total number of shares for each Share Class

Price per share:

Input price per share for each Share Class

Owners Tab within the card, The Greatest Start Up

We see two owners, Ben and Jackie

Once you click on Ben and Jackie within the Owners Tab, you will notice the position percentage (%) and position value was calculated automatically.

Click into Ben:

Click into Jackie:

Back to the Structure view:

Notice we blended in the Values and Amount Type to see the Percentage of Ownership by using shares and

Notice the “Value” in assets $ owned by Ben and Jackie