Company: GDSTR
Filing Date: 2025-08-05
Form Type: S-4/A
Source: 0001213900-25-071731
Chunk: 163

Company: Goldenstone Acquisition Ltd.
Filing Date: 2025-08-05
Form: S-4/A
Chunk 163
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 incorporated in Infintium management forecasts).

75 Income Method — Discounted Cash Flow Analysis EntrepreneurShares also conducted and analyzed a discounted cash flow analysis to calculate the implied Enterprise Value of Infintium, utilizing estimates of the illustrative standalone, unlevered, after -taxfree cash flows that Infintium management forecast during a four and a -halfyear period based on various assumptions Infintium management indicated that Infintium plans to pursue. For purposes of its discounted cash flow analyses, unlevered free cash flow was defined as Earnings Before Interest and after tax, plus depreciation and amortization expenses, less capital expenditures and less working capital investments. EntrepreneurShares calculated the illustrative terminal value of Infintium’s future potential business using the Gordon Growth Method for a business in a state of rapid growth under the premise of a going concern. The Gordon Growth Method was applied to the estimate of the terminal year unlevered free cash flow reflected in Infintium’s forecasts of its business plans. EntrepreneurShares discounted Company illustrative unlevered free cash flows over a four -and-a-half-yearforecast horizon, as well as the terminal value using the Gordon Growth Method for a business in a state of rapid growth, to arrive at an estimated Enterprise Value as at the date of valuation using a time -weighteddiscount rate based on a WACC range of 10.89% to 25.59%, taking into account of the potential future business of the Company, in conjunction with industry and economic indicators. The WACC has been calculated based on the cost of debt and cost of equity using an assumed 98% equity to 2% debt ratio, based on current capital structure that was expected to continue. The after -taxcost of debt was approximately 5%. The cost of equity was calculated to be a range of 11.01% to 26.01% based on a risk premium range of approximately 0% to 15% which was assigned to the Company based on EntrepreneurShares’ evaluation of the particular risk profile given various factors such as stage of business, expected liquidity, size of the company, nature of industry, geographic location of business operations among other factors which may require an additional risk premium over the risk -freerate and equity risk premium. The valuation range under this method was calculated to be between $19 million to $ 192 million. Based on the derived valuation range of approximately $19 million to $192 million, the transaction based on a pre -moneytotal enterprise value of $130 million fell within the derived valuation