Valuation Conclusions - Small High Tech Services Company at Technology Stock Peak

 

Subject to the assumptions and limiting conditions presented herein, we have estimated the Fair Market Value of Common Equity of 100.00% of  XYZ Systems's common stock equity to be $6,758,289.

 

                                                                                                                                                                              Weighted

Method                                                                                                            Value              Weight                     Value

Book Value                                                                                              433,776                1.0           433,776

Adjusted Book Value                                                                             433,776                0.0                      0

Liquidation Value                                                                                   102,446                0.0                      0

Capitalization of Earnings                                                                 6,661,667                1.0        6,661,667

Capitalization of Excess Earnings                                                    6,661,667                1.0        6,661,667

Discounted Future Earnings                                                             6,213,357                1.0        6,213,357

Mergerstat Price to Earnings Multiple                                         12,571,198                1.0      12,571,198

Rule of Thumb                                                                                    8,814,400                1.0        8,814,400

Sum of weighted values                                                                                                                              41,356,064

Divided by: Sum of weights                                                                                                                                        6.0

Weighted average total entity value                                                                     6,892,677

Less: Fair market value of Preferred stock                                                                                                      134,388

Fair market value of common equity                                                                    6,758,289

 

See the respective supporting schedules for the individual value calculations.