Defining-Value Inc. is offering a new valuation methodology, entitled Defining-Value^TM methodology, to reflect the present value of companies, assets and investments. The Defining-Value^TM methodology is a unique and powerful valuation tool for cutting-edge companies and an imperative for all companies in the future.

Wall Street models have failed to capture what is truly valuable in companies and companies have depended on analysts and traders to define that value. We boldly stepped away from the traditions of Wall Street and created a financial model with a human element. Our Defining-ValueTM methodology is a bold departure from the current way companies are studied and valued, but, we believe that the Finance platform is the mind of the company, while the Trust platform is the heart and soul. Both platforms are necessary to complete the equation of value for a given company.

Respected financial experts have been relentless in their recent negative, if not uncertain, opinions of Wall Street and its future. Their evaluation of Wall Street confirms that a new valuation model is required to assign value to companies. We think our model outrivals the competition and we look forward to working with your organization to reassess its value based upon our Defining-Value^TM methodology.

• “Models developed in the more normal times of the past few decades, based on things like corporate-profit forecasts, the interest-rate environment or the length of the average recession have failed in the current, exceptional economy.” – By E.S. Browning wrote in an article, “Rebound Wrinkle: Recession” of The Wall Street Journal (January 5, 2009, p. C1).


• “The fact is that recent economic numbers have been terrifying, not just in the United States but around the world. Manufacturing, in particular, is plunging everywhere. Banks aren’t lending; businesses and consumers aren’t spending. Let’s not mince words: This looks an awful lot like the beginning of a second Great Depression” – By Paul Krugman in an Op-Ed column, “Fighting Off Depression” in The New York Times on January 5, 2009.


• “Our financial catastrophe, like Bernard Madoff’s pyramid scheme, required all sorts of important, plugged-in people to sacrifice our collective long-term interests for short-term gain. The pressure to do this in today’s financial markets is immense” -- By Michael Lewis and David Einhorn in an Op-Ed column, “The End of the Financial World As We Know It” in The New York Times on January 4, 2009.


• “Credit, the disposition of one man to trust another, is singularly varying” was written 135 years ago by an English journalist, Walter Bagehot. He was quoted in an article, “Parched For Credit: Surviving on a Trickle Until Trust Is Restored” by Eric Dash and Vikas Bajaj in The New York Times (December 31, 2008, p. B1).


• “A big worry is the future of securitization…some question when, or if, certain areas of securitization will revive” by Eric Dash and Vikas Bajaj in the article “Parched For Credit: Surviving on a Trickle Until Trust Is Restored” in The New York Times (December 31, 2008, p. B1 and B4).


• “What Led to the Financial Meltdown: Mathematical Models Used to Evaluate Wall Street Trades? Or Bankers Who Misread Or Ignored Them?” – The cover of The New York Times Magazine by Joe Nocera on January 4, 2009.
  
  
  • “Were the measures used to evaluate Wall Street trades flawed?”
  • “The story that I have to tell is marked all the way through by a persistent tension between those who assert that the Best Decisions Are Based On Quantification and numbers, determined by the patterns of the past, and Those Who Base Their Decisions On More Subjective Degrees of Belief About The Uncertain Future. This is a controversy that has never been resolved.’” By Peter L. Bernstein, “Against the Gods: The Remarkable Story of Risk”.


• “The Weekend That Wall Street Died: Ties That Long United Strongest Firms Unraveled as Lehman Sank Toward Failure” by Susanne Craig, Jeffrey McCracken, Aaron Lucchetti and Kate Kelly on the front page of The Wall Street Journal (December 29, 2008, p. 1).


• “There is another victim of the credit crunch: the publicly traded model of ownership…I believe private ownership allows a more stable, long-term approach to wealth creation” by Luke Johnson in an article, “Why public ownership is a failed model” in The Financial Times (October 15, 2008, p. 14).


• “Algorithmic trades produce ‘snowball’ effect on volatility” by Anuj Gangahar in The Financial Times (December 5, 2008, p. 27).


• “Wall Street’s Extreme Sport: Modeling Risk, Financial Engineers Didn’t Account for Human Factor” by Steve Lohr in The New York Times (November 5, 2008, p. B1) discussed the complex mathematical and statistical computer models that failed to apply appropriate risk factors that were driven by a human element.
  
  Defining-Value Inc. believes that the public valuation models are flawed because they are based upon Wall Street creating hundreds of different valuation models from hundreds of analysts and traders. The Defining-Value^TM includes input from the constituents of the company. The Defining-Value^TM valuation methodology is pending patent and the details are publicly available on the U.S. Patent Trade Office website. Defining Value^TM is a computer model and incorporates a human element, is global and transparent, and I think is critical to valuing companies now and in the future.