Valuation Ethics: The ‘Due Skepticism’ Clause
In valuation, numbers may dazzle but it’s judgment that defines integrity.
At the heart of this integrity lies a principle professionals often overlook: Due Skepticism.
?? The Core Ethic
It’s not just about what you’re given
It’s about how critically you assess it.
Due Skepticism is the valuer’s compass. It means never accepting assumptions at face value, never signing off on forecasts without context, and always questioning what doesn’t sit right even when it’s inconvenient.
Valuation Insights
Cross-check projections: Industry norms, past trends, execution capability
Examine motivations: Does the valuation serve a purpose... or an agenda?
Stay alert to red flags: Sudden revenue surges, overly optimistic cash flows, or risk-blind discount rates
Ethical Missteps to Avoid
Blind reliance on client-provided data
Ignoring inconsistencies just to "keep the peace"
Rushing judgment due to deadlines or pressure from stakeholders
Takeaway for Valuers & Analysts:
Due Skepticism isn’t doubt for doubt’s sake. It’s the foundation of professional integrity.
It’s what makes the difference between a credible report and a compromised one.
Be curious. Be cautious. Be courageous.
Because trust in your work begins with doubt in what you’re given.
Absolutely. We have IBBI-Registered Valuers under all three categories—Land & Building, Plant & Machinery, and Securities/Financial Assets. Our team also includes experienced chartered accountants and engineers.
Yes. We offer remote/desk-based valuation for startups, financial assets, and select use-cases. For physical assets, we usually require on-site verification.
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