NWCH

§ 03DCF

Five-year free-cash-flow projection at the stated WACC.

DCF projects unlevered free cash flow over five years, discounts to present value at the stated WACC, and adds a terminal value computed by the Gordon Growth method. Result is enterprise value; net debt is subtracted to derive equity value.

Growth · Y1

3.0%

EBITDA Margin

25.3%

WACC

18.0%

Terminal Growth

2.5%

DCF range across sensitivity bands: $6.5M to $11.5M.

§ 04Operating Performance

Revenue, costs, and EBITDA margin · 2023 – 2030.

§ 05Comparable Companies

Engine excluded from this engagement.

Zero peers met the inclusion threshold (≥50% NAICS overlap, revenue within ±2× of the subject, public reporting within 18 months). The Comparable Companies engine was excluded from the blend; weight was redistributed to DCF and Precedent. Engine returns to scope when the next VA Index sector slice (236118 · Residential Remodelers) publishes on the first Tuesday of June.

§ 06Precedent Transactions

Six private-market deals; median multiple applied.

Median EV/EBITDA across six recent deals in NAICS 236118 and adjacent residential-builder codes: 5.4×. Applied to current-year EBITDA of $1.5M, this produces an implied enterprise value of $6.6M, before applying the standard 12% liquidity discount.

§ 07Methodology

Engine weights and rationale.

Engines are weighted by data quality, peer availability, and industry fit. The blended midpoint is the weighted average of each engine's midpoint estimate.

§ 08Scenario Analysis

Three complete valuation runs under distinct assumption sets.

Each case is a complete valuation under a distinct assumption set: conservative growth and margin (Bear), industry-blended (Base), aggressive at the industry ceiling (Bull). The range reflects assumption uncertainty, not methodology variance.

§ 09Asset-Based Floors

What the business is worth if the operating thesis fails.

Three asset-based floors: liquidation (forced sale of working capital plus hard assets), adjusted book (orderly wind-down at market value), and going concern (replacement cost of the asset base). Equity values above any floor confirm the operating thesis is doing more than holding assets.

§ 10Risk Factors

Conditions identified during this engagement that bear on the result.

§ 11Financial Statements

Income statement.

Balance sheet.

Estimated cash flow.

Cash flow derived from income statement and balance sheet inputs. Where periodic EBITDA, D&A, capital expenditure, or working-capital movements were not supplied, the engine imputed from trailing ratios. Methodology: § 07.

§ 12Document Appendix

Source materials supplied by engagement holder.

§ 13Data Sources

External data referenced during this engagement.

Comparable Companies — 0 of 4 candidate peers met the inclusion threshold. Source pool: public-market data, third-party private-market data, VA Index sector slice for NAICS 236118.

Precedent Transactions — 6 of 7 candidate deals included in the median. Source pool: third-party deal databases, private-market marketplaces, registered business brokers. One deal excluded for incomplete EV reporting.