Project Assumptions
The first sheet in an Analysis file is the Project Assumptions sheet. See Working with Assumptions. Each of the Project Assumptions is explained below.
Entity Type
Legal structure of the subject business.
| • | For corporations and partnerships, determines the type of security being valued, shares or a partnership interest. |
| • | For sole proprietorships, value is calculated for the entire business. |
First Fiscal Period Ends
End date for the first historic fiscal period. This must be a full 12 month period, not a partial period.
Last Fiscal Period Ends
End date for the most recent historic fiscal period. This may be a partial or stub period.
Number of Balance Sheets
Determines if the financial statements contain a balance sheet for each of the financial periods, or only for the most recent period. Be sure to select All Periods if you want to analyze the subject business's historical balance sheet data.
Value Calculation
ValuSource Pro supports two value calculations:
Equity Value is the value of the company's ownership. This is the most common value calculation.
Enterprise Value is the value of the operating assets less the operating liabilities, or "cash free and debt free". This calculation is used primarily in mergers and acquisitions. When Enterprise Value is selected, the Capitalization of Excess Earnings method is not displayed.
Application of Premiums, Discounts and Non-Operating/Excess Assets
Determines if premiums, discounts and excess/non-operating assets are applied to each individual appraisal method or to the conclusion of value.
To Appraisal Methods
Enables the relevant controls for the appraisal methods. Disables the Conclusion of Value Assumptions.
To Conclusion of Value
Disables the relevant controls for the appraisal methods. Enables the Conclusion of Value Assumptions.