Estimate 409A common stock value
estimate_409a_valueRead-onlyIdempotent
Gives an indicative range for the fair market value per share of a US private company's common stock, as a planning estimate before a formal 409A valuation (for example, to anticipate an option strike price). Uses an option pricing model backsolve when there is a priced round in the last 12 months; otherwise a rolled-forward round, a sector revenue multiple, or an asset-based approach, depending on the inputs. Applies Finnerty and Chaffe marketability discounts. Inputs are numbers from the cap table and financials; no company or personal names are needed. Limitations: treats all preferred as non-participating and pari passu with 1:1 conversion, and does not model SAFEs or convertible notes. The result is not a 409A valuation.
Input Schema
TableJSON Schema
| Name | Required | Description | Default |
|---|---|---|---|
| cash | No | Cash on hand, in US dollars. | |
| debt | No | Interest-bearing debt, in US dollars. | |
| sector | No | Company sector. Sets the default volatility and revenue multiple. Use 'other' if unsure. | |
| years_to_exit | No | Expected years until a sale or IPO. Defaults to 3. | |
| volatility_pct | No | Optional override for equity volatility, as a percentage. | |
| gross_margin_pct | No | Gross margin, as a percentage. | |
| preferred_series | No | Each priced preferred share round. Leave empty or omit if the company has never raised a priced round. | |
| revenue_growth_pct | No | Year-over-year revenue growth, as a percentage (for example 40 for 40%). | |
| risk_free_rate_pct | No | Optional current government bond yield matching years_to_exit, as a percentage. | |
| options_outstanding | No | Number of share options granted and outstanding. | |
| revenue_last_12_months | No | Revenue for the last 12 months, in US dollars. | |
| total_capital_invested | No | Total equity capital invested to date, in US dollars. Used when there is no priced round and no revenue. | |
| common_shares_outstanding | Yes | Number of common shares issued and outstanding (excluding options and preferred). | |
| has_participating_preferred | No | True if any preferred series is participating. | |
| performance_since_last_round | No | How the company has performed against plan since its last priced round. Used when that round is more than 12 months old. | |
| has_unconverted_safes_or_notes | No | True if the company has SAFEs or convertible notes that have not yet converted. | |
| options_weighted_average_strike | No | Weighted average exercise price of outstanding options, in US dollars. |