Understand Valuation on Equify

The "Valuation" tab allows you to follow the evolution of the value of your company's shares.

1️⃣ Elements used in the calculation of the valuation

2️⃣ Simulation of the valuation

3️⃣ The 3 curves of the valuation

4️⃣ Valuation on the holder's side

1️⃣ Elements used in the calculation of the valuation :

- The price of subscription transactions
- The price of transfer / sale transactions

⚠️ Only the price of the securities issued is taken into account (Ordinary Shares or Preference Shares), not the price of options or bonds that may give access to capital.

 

➡️ For each new subscription/sale transaction, the total value of the company is estimated by multiplying the fully diluted quantity of the company's shares by the last price indicated.

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💡 Note also that some transactions can be excluded from the valuation. To do this, simply access the chronology menu, then modify the event to which the operation is linked and uncheck the "Include in the valuation" option.

📚 How to modify or delete an event ?

2️⃣ Simulation of the valuation :


It is possible to simulate a new valuation of the company:
To do this, you must :
- Create a new event
- Check the option "used for valuation" then choose "custom price" and indicate the desired price.

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➡️ The valuation curve will adapt to the event created :

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⚠️ You can then delete this event to avoid any errors.

 

3️⃣ The 3 valuation curves :

- Total valuation of all shares : Curve allowing to see the evolution of the valuation of all shares of the company (Fully Diluted included).

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- Price per share : Curve allowing to see only the evolution of a share price over time.

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- Quantity (Fully Diluted) : Curve allowing to see the evolution of the number of shares within the company (Fully Diluted included).

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4️⃣ Valuation on the account holder's side :

It is possible to allow accounts with access to their space to make simulations of their potential earnings based on the latest company valuation or a chosen share price.

➡️ In their account holder area, they will have to go to their dashboard and they will find a "Valuation" tab :

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It shows the securities held and the securities acquired, e.g. here Ordinary Shares and BSPCEs.

The last price per share is indicated → the person has the choice to indicate this price, to underestimate it or to overestimate it.

His estimated unrealised gains will therefore be displayed in addition to the cost of exercising his securities (BSPCE) and the amount invested for the securities issued (Ordinary Shares) :

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➡️ The graph gives a proportional idea of what the cost of the exercise is and the amount invested versus the gains.

💡 If you are an administrator and you wish to have access to the valuation functionality, it will be necessary to make a request to us by contacting the support team : support@equify.eu

Similarly, if you want the simulation functionality to be accessible for your holders, it will be necessary to ask us.