Table of Contents5 sections
01 A New Era for Valuation Standards
The International Valuation Standards Council (IVSC) published its updated framework effective January 2025, marking the most significant revision since 2020. For professionals who rely on structured valuation methodologies, understanding these changes is not optional — it is essential for maintaining credibility and regulatory compliance.
At iValuate360, our platform is already fully aligned with the IVSC 2025 framework, ensuring every report you generate meets the latest institutional standards.
02 Key Changes in IVS 2025
1. Enhanced Disclosure Requirements
The revised IVS 104 now mandates more granular disclosure of assumptions, especially around discount rates, growth projections, and the selection of comparable companies. Valuers must document why specific assumptions were chosen, not just what they are.
2. ESG Integration Guidance
For the first time, the IVSC provides formal guidance on incorporating Environmental, Social, and Governance (ESG) factors into valuation models. This includes adjustments to risk premiums, cash flow forecasts, and terminal value assumptions for companies with material ESG exposures.
3. Technology and Data Standards
Recognizing the growing role of AI and automated tools, IVS 2025 introduces standards for technology-assisted valuations. Automated models must still demonstrate the professional judgment and transparency expected of human valuers.
4. Market Approach Refinements
The guidance on selecting and adjusting comparable transactions has been significantly expanded. The new framework emphasizes the need to adjust for control premiums, liquidity discounts, and timing differences with greater rigor.
03 Practical Impact for Valuation Professionals
These changes affect how every DCF model is built and documented. Key areas of impact include:
- WACC documentation: Each component (risk-free rate, equity risk premium, beta, size premium) must now include source citations and date references.
- Sensitivity analysis: No longer optional — IVS 2025 strongly recommends presenting valuation ranges rather than single-point estimates.
- Comparable company selection: Must include explicit criteria for inclusion and exclusion of peers.
04 How iValuate360 Keeps You Compliant
Our platform automatically generates reports that comply with IVS 2025 requirements, including full WACC build-up documentation, mandatory sensitivity analysis, and structured comparable company analysis. Every assumption is traceable and auditable.
With IVS 2025, transparency is no longer a best practice — it is a requirement. iValuate360 ensures your reports meet this standard from day one.
05 What You Should Do Now
If you are producing valuation reports, review your current methodology against the IVS 2025 checklist. Pay particular attention to disclosure requirements and ESG considerations. Better yet, use a platform like iValuate360 that handles compliance automatically, so you can focus on analysis rather than formatting.