Company: GDSTR
Filing Date: 2025-05-14
Form Type: S-4/A
Source: 0001213900-25-043297
Chunk: 153

Company: Goldenstone Acquisition Ltd.
Filing Date: 2025-05-14
Form: S-4/A
Chunk 153
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 mid -pointof the calculated WACC range of 10.89% to 25.59%. 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. Based upon each of the GPC Guideline Companies identified above, a forward next twelve months (“NTM”) Enterprise Value -to-Revenue(EV/Revenue) multiple range of 2.72x to 8.36x was selected as the comparable valuation metric. The multiples used were reflected in the most recent public filings made by the GPC Guideline Companies and consensus estimates obtained from publicly available equity research analysts’ projections made available by CapIQ as of the Access Date. EntrepreneurShares derived a multiple range based on the mean and median multiples of the GPC Guideline Companies and applied the multiple range to the Company’s FY2025 Revenue resulting in an implied valuation range of $79 million to $242 million. The implied valuation range of $79 million to $242 million was discounted using a period factor of 0.54 and discount rate of 18% calculated as the WACC, resulting in a valuation range of $72 million to $221 million. The FY2025 Revenue was based on the operational forecasts provided by Company Management. Based on the derived valuation range of approximately $72 million to $221 million, the transaction based on a pre -moneytotal enterprise value of $130 million fell within the derived valuation range and was deemed to be fair from a financial point of view under this methodology. EntrepreneurShares utilized the platform and analytical tools of CapIQ’s public company database (the “database,” unless otherwise indicated, as accessed as of June 20, 2024 (the “Access Date”)), to assist with the identification of GPC Guideline Companies and to obtain certain publicly available information about those companies, as further described below. Of the total number