When the method changes
The engine, its research and its rules improve over time. Every change they make to your value is measured, named and kept apart from your results.
Method changes are named, never passed off as your work
The engine improves. Its research is refreshed and its rules are sharpened. Each of those can move your value, and none of them has anything to do with how you ran the business. So every method change is measured, named and kept apart from your results.
Revision to revision
Even a single report can change between drafts. The sample report went through two earlier revisions; each hop is bridged by rule and by input.
- SRevision G6$3.76M
- 1Headline weights rule+$16k
- 2Long-run margin rule+$174k
- 3Five inputs moved+$118k
- ERevision G7$4.06M
- SRevision G7$4.06M
- 1Seat convention rule−$131k
- EThis report$3.93M
No input moved in this hop; ten inputs changed only their evidence tier.
How to read it. Each tab is one hop between drafts. Steps named for a rule are the method; steps named for inputs are answers that changed.
A rule step is the current engine with that one rule switched on and every input held. An input step is an answer that changed. A residual the current engine can’t reproduce would be shown as its own line.
When the industry research changes
New research can move the benchmark bands. That changes where your business sits on the industry landscape and the back-test. It can’t move your value, because the medians the engine prices with are a table frozen into the valuation policy.
The dossier’s bands place the business on the landscape page and set the back-test. The medians the engine prices with are the archetype table written into the valuation policy and stamped with its version, so a band that moves can’t move the value without a policy change, which the revision bridge then names by rule.
| Benchmark (constructed prior run) | Before | After | Effect on value |
|---|---|---|---|
| Customer churn band | 4 / 8 / 13 | 5 / 9 / 14 | $0 |
| Service gross margin band | 52 / 64 / 74 | 50 / 62 / 72 | $0 |
Exercised on a constructed prior run with two benchmarks moved: the benchmark component of the bridge is $0.
When only the evidence changes
Sometimes an answer doesn’t change but the proof behind it does: a figure you typed is confirmed from a document. The value stays the same and the record improves. Between two drafts of the sample, ten inputs moved from owner-stated to document-verified with no change in value.
Owner-stated→Document-verified
- Stamps. Every page carries the engine version, the policy version and a fingerprint of the inputs, so a value can always be traced to the method that produced it
- Policy log. Each rule carries the policy version that introduced it: in the sample, two rules arrived with policy 1.1 and one with policy 1.2
- Separation. In the run-to-run bridge, method changes sit in step one and never in the operating step
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