Hello EdP,

Actually the time period for a valuation is up to the analyst. For example, could you not calculate the value of a non-publicly traded company that went bankrupt during the Great Depression? Yes. Could you not calculate the value, not to a present value, but an estimate of what you believe a company is worth in 6.3 years because you are valuing the options extended to executives? Yes. You can also calculate the present value of the asset, which is what most people calculate in a valuation.

But FEV analytics does not project a future and then discount it back to the present. Instead they use historic information to assess present value. In fact, when I was a portfolio manager I used to play around with valuing companies based solely on their historic results. The point is that there are lots of ways to derive valuation. The question is whether or not the model you are utilizing is borne out by reality, ultimately.

Yours, in service,

Jason