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  3. As I add amounts in the One Time expense box, it increases company value (as it should) until I get to $30,000. at that time it reduces the value if the amount enter were zero by $100,000. It seems to continue like that for amounts over $30,000. At an enter of $25,000 it is increases company value above the norm. At $30,000 the norm drops by $100,000. Why is this happening? It makes no sense to me

As I add amounts in the One Time expense box, it increases company value (as it should) until I get to $30,000. at that time it reduces the value if the amount enter were zero by $100,000. It seems to continue like that for amounts over $30,000. At an enter of $25,000 it is increases company value above the norm. At $30,000 the norm drops by $100,000. Why is this happening? It makes no sense to me

The tool is not built specifically to perform "sensitivity analysis". The reason for the seemingly awkward movements is likely the moving from one weighting of the price to revenue multiple results versus the price to earnings results to another weighting.


The ultimate test of our system is, if and when all entries are made, does the final estimate of value make sense.


The fact is that if you increase owner compensation, in reality, the pretax income would come down by a corresponding amount - otherwise you are literally creating income and valuing what is an entirely different business.