I am about to embark on raising money. I am reasonably sure that I have constructed an accurate but very conservative 5 year plan.
If the cash flows are to be believed, I will now have to pin a value on shares.
So lets say that the net profit is as follows for the next 6 years (with year zero being this year where we have a negative cash flow because we spend lots!)
(not my real numbers, but similar pattern of growth)
0: -150,000 1: 70,000 2: 240,000 3: 870,000 4: 1,200,000 5: 2,000,000
What would be a ball park range for share value and why? To keep it simple, all shares in the company are the same. all get equal votes and none have special status.