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Description
From the marketplace listing
Codon Valuation estimates the value of a private company's common stock (US) or ordinary shares (UK) before a formal valuation.
Give it the company's cap table and finances, such as share counts by class, the last priced round, revenue, cash and debt, and it returns an indicative low, mid and high value per share with the method and every assumption shown. The method follows what the company provides: an option pricing model calibrated to a recent priced round, a roll-forward of an older round blended with a revenue multiple, a sector revenue multiple, or an asset-based range for pre-revenue companies. Value is allocated across share classes with a Black-Scholes option pricing model, then a discount for lack of marketability is applied using the Finnerty and Chaffe models.
It also explains the documents and process for a formal IRC 409A valuation or an HMRC EMI valuation.
All tools are read-only. Nothing is stored, no account is needed, and the tools do not ask for names or other personal information. Results are indicative planning estimates: they are not a 409A valuation, do not provide safe harbor protection, and are not a valuation agreed with HMRC.
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Publisher full description
Codon Valuation estimates the value of a private company's common stock (US) or ordinary shares (UK) before a formal valuation.
Give it the company's cap table and finances, such as share counts by class, the last priced round, revenue, cash and debt, and it returns an indicative low, mid and high value per share with the method and every assumption shown. The method follows what the company provides: an option pricing model calibrated to a recent priced round, a roll-forward of an older round blended with a revenue multiple, a sector revenue multiple, or an asset-based range for pre-revenue companies. Value is allocated across share classes with a Black-Scholes option pricing model, then a discount for lack of marketability is applied using the Finnerty and Chaffe models.
It also explains the documents and process for a formal IRC 409A valuation or an HMRC EMI valuation.
All tools are read-only. Nothing is stored, no account is needed, and the tools do not ask for names or other personal information. Results are indicative planning estimates: they are not a 409A valuation, do not provide safe harbor protection, and are not a valuation agreed with HMRC.
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name: get-started
description: How to estimate a private company's 409A or EMI share value with the Codon Valuation tools, which inputs to collect, and how to present the result.
---
# Estimating a share value with Codon Valuation
Use `estimate_409a_value` for a US company (value per common share in US dollars) and `estimate_emi_share_value` for a UK company (value per ordinary share in pounds sterling). Use `get_formal_valuation_info` when the user asks what a formal 409A or EMI valuation involves, what documents are needed, or how to request one.
## Collect the inputs first
Ask for what is missing before calling an estimate tool. The minimum is the number of common or ordinary shares and either a priced round or some financial figures:
- Share classes: common/ordinary share count; each preferred class with its share count, price per share and how many months ago it was priced.
- Outstanding options: total count and weighted average exercise price, if any.
- Finances: trailing twelve-month revenue, cash, debt and total capital invested, whichever are known.
- Sector, so the right volatility and revenue multiple assumptions are used.
- For an older priced round: whether the company is ahead of, on, or behind the plan it raised on.
- Any SAFEs or convertible notes: say so, because they lower the stated confidence.
Do not ask for, or pass, names, email addresses or other personal information. The tools do not need them.
## Present the result
Report the low, mid and high value per share, the method used and its confidence, and the key assumptions returned by the tool. Keep the tool's disclaimer: the figure is an indicative planning estimate, not a 409A valuation, not safe harbor protection, and not a value agreed with HMRC. If the user wants a formal valuation, use `get_formal_valuation_info` rather than describing the process yourself.
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