Earnings Base

The Mergerstat Earnings Base worksheet calculates the earnings value used in the Indicated Value worksheet.

Historic or Adjusted

The Historic or Adjusted setting on the Assumptions sheet determines if the calculations start from the historic or adjusted financial statements.

Adjusting the Base

To adjust the calculated base:

Click on the Adjust Base button on the Desktop Toolbar. An adjustments row will appear on the worksheet.

Enter a label for the adjustments row in the white input cell in the labels column.

Enter adjustments for the financial periods.

To hide the adjustments and remove them from the calculations, click on the Adjust Base button again.

Weighted Average

Enter a weight for each of the financial periods. The worksheet will update the weighted average calculated in the cell labeled "Taxable Base".

Taxes

Enter a state tax rate in the white input cell labeled "Less Estimated State Income Taxes - Effective Rate". Federal taxes are calculated at the bottom of the worksheet, using the brackets and rates from the Federal Tax Table. You can overwrite any of the blue text cells in the table calculation or in the line labeled "Less Federal Taxes".

Selected Ongoing Base

The rounded value in the cell labeled "SELECTED ONGOING ADDITIONAL ADJUSTMENT" is used in the Indicated Value worksheet. You can edit this value by overwriting its blue text cell.