The Stub Period Date should be the date of your opening balance sheet, which would be the date immediately preceding the forecast period. If your forecast financials include the last two quarters of 2022, the Stub Period Date should be June 30, 2022. The beginning of the financial forecast would then occur on July 1, 2022 and the stub period would run from that date until the end of the calendar year.

All net debt components should be stated as of the Stub Period Date except for planned capital raise amount, which can be shown on a pro forma basis reflecting proceeds from a financing expected to occur within a few months of the Stub Period Date. The Stub Period Date can be a date up to six months in the past or six months in the future. Note that all future values are discounted to the Stub Period Date in the Discounted Cash Flow and VC Method analyses, and only free cash flows occurring after the Stub Period Date contribute to the Discounted Cash Flow analysis implied valuation. Any accumulated net cash or debt from free cash flows before such time is assumed to be reflected in net debt on the opening balance sheet, dated as of the Stub Period Date.

The Valuation Date should be the date as of which you want to source market data based assumptions such as comparable company multiples and risk free rates. While the Stub Period Date may be dictated by financial reporting dates and the granularity of company financial forecasts, the Valuation Date should usually be as recent as possible to reflect current market conditions. The Valuation Date must be a date in the past in the last six months. Values are taken as of most recent market close from the Valuation Date.