Holding valuation

01What is valued

A holding is one position your organisation has in an asset or a company. It is prospective while a deal is open, held once it is recorded as held, and later exited or withdrawn. Only held holdings are valued. Any other holding reads "Only held holdings are valued" and is left out of totals.

Each holding has one valuation method. Its kind lists the methods it allows and a default, which the user can change:

Holding kind	Held in	Methods allowed	Default
Ownership	An asset	Share of asset value, scenario, cost, not valued	Share of asset value
Equity	A company	Cost, look-through estimate, not valued	Cost
License in	An asset	Not valued, cost	Not valued
License out	An asset	Scenario, not valued	Scenario
Royalty	An asset	Scenario, cost, not valued	Scenario

A method the application does not recognise reads "This valuation method is not available yet" rather than a guessed value.

02The five methods

Method	Inputs	Value	Basis shown
Scenario	The scenario chosen for the holding, and the holding's ownership share if one is recorded	The scenario's computed rNPV in USD, or the ownership share of it	The scenario's own basis (full ownership, royalty receipts, milestone and royalty receipts, profit share, or basis unknown), as "Share of scenario" when an ownership share applies
Share of asset value	The ownership share and the asset's value	The ownership share of the asset's full-ownership value, in USD	Share of full-ownership value
Look-through estimate	The ownership share and the values of the assets the company owns or sponsors	The ownership share of the sum of those assets' full-ownership values, in USD (§5)	Look-through estimate
Cost	The holding's ledger	For each currency: funding plus fees, less write-downs	Cost less write-downs
Not valued	None	No value	None

The asset's value is the one the asset pages show: the newest included base-case scenario of each included indication plan, added together only when they share one basis. With no plan included, it is the asset's newest base-case scenario. Share of asset value and the look-through estimate use an asset's value only when its basis is full ownership. A scenario's basis comes from its deal structure; a scenario that declares full ownership but whose result was computed as a deal reads "Basis unknown".

Cost reads the holding's ledger rows, leaving out voided rows. Funding and fees make up cost; commitments are promises to pay and receipts are money back, so neither changes it. Write-downs are taken from cost in the same currency. Each currency gives its own amount, and currencies are never converted. A currency whose write-downs exceed its cost makes the whole holding not valued, rather than showing a negative cost.

03Reasons a holding is not valued

A holding that cannot be valued shows one of these reasons, and is never shown as zero. The asset reasons also mark each of a company's assets that a look-through estimate could not add (§5).

Reason code	Method	Message
not_held	Any	Only held holdings are valued.
method_not_valued	Not valued	Set to not valued.
method_not_available	Any	This valuation method is not available yet.
no_scenario	Scenario	No scenario chosen.
scenario_not_computed	Scenario	The scenario has no computed rNPV.
scenario_invalid	Scenario	The scenario result is not a number.
ownership_missing	Share of asset value, look-through estimate	No ownership share recorded.
asset_not_valued	Share of asset value	The asset has no value yet.
asset_value_invalid	Share of asset value	The asset value is not a number.
asset_value_not_full_ownership	Share of asset value	The asset value is not on the full-ownership basis.
asset_archived	Look-through estimate, for one of the company's assets	The asset is archived.
no_cost_recorded	Cost	No funding or fees recorded.
write_downs_exceed_cost	Cost	Write-downs exceed cost.
company_has_no_assets	Look-through estimate	The company owns or sponsors no assets.
company_assets_not_valued	Look-through estimate	None of the company's assets has a full-ownership value.

04Completeness and totals

A value is complete or partial. Scenario and cost values are complete. A share of asset value is partial when the asset's value is partial, meaning some of its included indication plans have no computed base case. A look-through estimate is partial when any of the company's assets has a partial value or could not be added (§5).

Totals follow these rules:

• Only held holdings count.
• Values are added only within one basis and one currency. Different bases are shown side by side and never added; currencies are never converted.
• A held holding that cannot be valued is counted as not valued and never added as zero. A basis with no valued holding is not shown, rather than shown as zero.
• Partial values are added and counted, so each total says how many of its holdings are partial.
• Look-through estimates are left out by default and counted separately. When a user includes them, they form their own group and are never added to another basis.

05The look-through estimate

The look-through estimate values an equity holding in a company from the assets that company holds. It exists because a private company's own share price is rarely known, while its assets may already be valued in the workspace.

Which assets count. The assets the company currently owns or sponsors in your workspace: a current-owner or sponsor role that has not ended or been removed. Each asset counts once, even when the company holds both roles. An asset can count in more than one company's estimate: it can have several current owners as well as a sponsor, and each of them counts it in full.

Each asset. A complete full-ownership value is added. A partial full-ownership value is added and counted as partial. An asset with no value, a value that is not a number, a value on another basis, or an asset that has been archived is listed with its reason and not added.

The value is the holding's ownership share of the sum, in USD. An asset's rNPV can be negative, so the estimate can be negative too. The ownership share is the organisation's total share in the company: a later round in the same company adds its commitment and funding to the existing holding, and the user can update the share there, rather than recording a second holding. A company page warns when two held holdings of the same kind name that company, because both would count its assets.

Wherever a holding's estimate is shown, it is labelled "Estimate, not an equity valuation" and "Ignores cash, debt, preferences and dilution", and each of the company's assets is listed with whether it was added. Estimates a user includes in totals are marked as estimates there.

What it ignores. The estimate is not a price for the company's shares. It leaves out:

• the company's cash and debt;
• liquidation preferences and other rights attached to share classes;
• dilution from later rounds, options or convertible instruments, unless the user updates the ownership share;
• corporate costs that are not part of any asset's scenario;
• rights the company has licensed to others: an asset it has licensed out still counts at its full-ownership value;
• assets the company holds without a current-owner or sponsor role, and the company's own holdings in other companies (it looks through one level only).

Round figures shown beside it. When the holding was recorded from an agreed equity purchase, the panel also shows the pre-money valuation recorded on that term, and an implied post-money: the purchase amount divided by the share bought in that round. That share is the first equity issuance share in the agreed terms, or else the share recorded when the holding was created, while neither a later round nor an edit has changed it; otherwise no implied post-money is shown. The purchase amount leaves out the round's tranches. These figures stay in the term's own currency beside the estimate, and are never converted or compared with it.

06Where the ledger figures come from

Ledger rows are the user's record of what was committed, paid, received and written down. When an equity deal closes, the confirmation step prefills rows from the deal's newest agreed terms, and the user can change or leave out any of them before anything is recorded:

• For each equity purchase, a commitment and a funding row for its amount, which is what is paid at closing.
• For each tranche, a commitment for its amount, a further conditional payment. Its funding is recorded later, when it is paid, prefilled from the tranche term.

So the commitment is the purchase plus its tranches, in each currency, and cost counts only what has been funded.

A later round in a company the organisation already holds adds its rows to the existing holding, once per deal. Tranche funding is offered later only for the deal that created the holding; a later round's tranche funding is recorded by hand when it is paid.

07Versioning

This section is carried by Methodology M6. The look-through estimate is new in M6; the other four methods are documented as they have worked since holdings were introduced. M6 changes no rNPV model value: engine_version is unaffected, no scenario's value changes, and every issued export still verifies. Holding values are shown in the workspace only; no export, REST or MCP response carries them.