US 20010041996A1
(19) United States
(12) Patent Application Publication (io) Pub. No.: US 2001/0041996 Al
Eder (43) Pub. Date: Nov. 15,2001
(54) METHOD OF AND SYSTEM FOR VALUING ELEMENTS OF A BUSINESS ENTERPRISE
(76) Inventor: Jeffrey Scott Eder, Mill Creek, WA
(US)
Correspondence Address:
Jeff Eder
19108 30th Drive SE
Mill Creek, WA 98012 (US)
(21) Appl. No.: 09/781,948
(22) Filed: Feb. 14, 2001
Related U.S. Application Data
(63) Continuation of application No. 08/779,109, filed on Jan. 6, 1997.
Publication Classification
(51) Int. CI.7 G06F 17/60
(52) U.S. CI 705/7; 705/10
(57) ABSTRACT
An automated system and method for measuring the performance of elements of a business enterprise and for valuing said elements on a specified valuation date. The performance of the elements are calculated using composite variables. Predictive models are then used to determine the correlation between the element performance and the enterprise value drivers, revenue, expenses and changes in capital. The element correlation percentages are then multiplied by capitalized value of future revenue, expenses and changes in capital, the three resulting numbers are then added together to calculate a value for each element. Finally, the relationship between the market value of the business and the calculated business value is optionally calculated for use in forecasting future equity prices.
