Like everything else, accounting also needs evolution and enhancement to give better lifestyle to a person. Accounting is not limited to recording of a business activity, rather it pulls ways out to grow a business.
Evaluation based on a user generation is a revolutionary method to value a company’s net worth and flatten the inflation from the society. Inflation always starts from your home; thus, it becomes vital to fix home inflation first to avoid an upcoming inflation in society.
It has been proven that nothing is impossible if there is a will and skill to seal a deal. Thus, inflation is also controllable, and we will demonstrate below how can we take off the word inflation from books.
The flatter the inflation, digitalization is required, whereas to spread the digitalization will is required. The inflation starts from home and spread out in the entire society like a cancer and many times it become uncontrollable.
The 500-year-old traditional methods do not build societies rather than building jails to prison a person behind the desk and spend all life alone serving customers without a day off.
What are the traditional methods to evaluate a business valuation?
- Income earnings approach
- Assets valuation approach
- Fair market value approach
Tradition methods vs User Approach Method
- The income earnings approach skips the potential in business.
- Assets valuation method skips the users of business
- Whereas the fair market value approach always leaves victim behind.
We will explain in steps to measure business users to offer a block for equity and we will use a disaggregated valuation method which is not yet very popular and does not have much education available on the internet.
There are two steps to find the acquisition cost of a user and the price of the acquisition of a user:
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Per user acquisition cost
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Per user acquisition price
We will demonstrate each method separately below with examples:
How to calculate user acquisition cost? `
David and Sons LLC
User Acquisition Cost
12/31/2022
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Description Amount
Total operating expenses $94,958
Number of blocks/users received 300
Each block/User $316.53
Seven Times Multiplier $2,215.69
Company Fair Market Value $664,706
Equity Holding in Percentage 0.3333%
How to calculate selling price of one block/user?
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David and Sons LLC
Per Block/User Selling Price
12/31/2022
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Description Amount
Common Stock $5719
Additional Paid in Capital $2,500
SBA Loan $372,100
Stockholders Withdrawal ($441,235)
Net Income ($14,144)
Retained Earnings $178,970
Stockholders’ Equity $103,910
Ownership in InfoTaxSquare.com 0.3333%
Equity in InfoTaxSquar.com $346.37
