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VALUEVIEW360℠

Understand What Is Behind Your Company’s Valuation Gap

For many small- and mid-cap public companies, market valuation does not fully reflect the strength of the business, strategy or long-term opportunity.

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In today’s market, investor attention and capital have become increasingly concentrated in mega-cap growth stocks and alternative investment strategies, making it harder for many small- and mid-cap companies to get full credit for their performance and prospects. ValueView360℠ helps identify the key factors contributing to a valuation gap and provides an actionable blueprint to address it.

What is a valuation gap assessment?

A valuation gap assessment is a thorough review of the factors contributing to the disconnect between a company’s intrinsic value and how the market is valuing its stock. The assessment identifies the key drivers of the gap and provides a prioritized action plan for addressing them.

The business cost of an undervalued stock

A persistently undervalued stock has real business consequences, including a higher cost of capital, increased vulnerability to activist pressure, constrained investment in organic growth and strategic acquisitions, and reduced effectiveness of equity compensation. ValueView360℠ helps identify the key factors contributing to the valuation gap and provides a detailed plan to help achieve fair value. 

What ValueView360℠ evaluates

Because valuation gaps are rarely driven by a single issue, ValueView360℠ takes a 360-degree view of the qualitative and quantitative factors that may be contributing to the gap. This process helps identify the most important contributors and where targeted action can have the greatest impact.

  • Business performance
  • Trading dynamics
  • Wall Street sponsorship
  • Capital allocation
  • Market perception
  • Communications
  • Market and media visibility

What you receive

Clients receive a comprehensive report and consultation with Financial Profiles to review the valuation gap assessment. The presentation includes a summary of the key drivers, supporting analysis and tailored, actionable recommendations to address the gap. Clients may implement the recommendations independently or engage Financial Profiles to support some or all of the recommended actions.

Why Financial Profiles

Financial Profiles combines investor relations, public relations, Wall Street and communications expertise to help small- and mid-cap companies create value through effective communications. With a 20-year track record of helping companies address valuation gaps, we develop strategic investor communications programs that support stronger market visibility, higher valuations and ongoing access to capital.

ValueView360SM in practice

Utility · Mid capClosing the Valuation Gap for a Mid-Cap Public Utility CompanyTrading at a discount to large-cap peers despite solid results. The assessment produced a prioritized blueprint across investor messaging, guidance, disclosure and Wall Street targeting. The stock rose nearly 30% in the year that followed.Read the case study →Engineering services · Small capAddressing a valuation gap for a growing small-cap engineering services companyA completed business transformation the market had not priced in. Two years after the assessment and the integrated program that followed, stock price and market capitalization had nearly doubled, sell-side coverage grew from two firms to five and institutional ownership rose nearly 30%.Read the case study →

Find out what the market may be missing

Get a clear view of what is driving your valuation gap and a tailored, actionable blueprint to address it.

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Keep reading

Stylised market data and ticker lightsInvestor perceptionWhy is My Stock Undervalued?We have rarely met a CEO or CFO who did not think their stock was undervalued. Valuation is top of mind for management teams and boards…Continue reading →Two advisers reviewing printed financial charts at a tableValuation gapWhat CFOs can do about small- and mid-cap valuation gapsAt the height of the public markets, there were roughly 8,000 publicly listed companies in the U.S. Today, there are fewer than 4,000…Continue reading →