Several inputs in your valuation depend on the country your company is based in, and Equidam keeps full economic data for a set list of countries. If your country is not on that list, we run those inputs on a similar country that is, called the calculations country, and keep your own country on record. Your report then shows two countries: your company country and the country the calculations are based on. You can see and change the calculations country in the Questionnaire.
Which parts of the valuation use the calculations country?
These inputs use the calculations country:
Risk-free rate and market risk premium, which set the discount rate (WACC, the weighted average cost of capital) in the DCF methods (discounted cash flow)
Survival rates applied to your projected years
Corporate tax rate and any scheduled tax changes
The average valuation the Scorecard method starts from
The maximum valuation used by the Checklist method
Where does the report show each country?
When a calculations country is in use, the Company summary page of the report shows both. "Company country:" shows the country you selected. "Calculations based on:" shows the calculations country, with this note under it: "For this valuation, [calculations country] is used as a proxy because [your country] has limited economic data available. This does not affect your selected country of operation."
The method pages name the country the values were taken from, which is the calculations country:
The Scorecard and Checklist summaries show the average valuation and maximum valuation followed by the country in brackets, as long as you have not set your own value.
The Scorecard appendix shows "Average valuation (Scorecard Method) in" and "Maximum valuation (Checklist Method) in" followed by the calculations country.
The DCF appendix shows your company name followed by "country:" and the calculations country, then that country's risk-free rate and default market risk premium.
If your country has full data, the report shows only your country and none of these notes appear.
How is the calculations country chosen?
Each country without full data has its own pairing in a fixed list, matched to one country that has full data. Some examples:
Brunei uses Bahrain
Sri Lanka uses India
Ghana uses Kenya
Nepal uses Burkina Faso
Every country you can select in the app is either fully supported or has a pairing on this list.
Can I choose a different calculations country?
Yes. In the Questionnaire, the Product and Market section asks "In which country is the company based?" (question 17). If the country you pick has no full data, question 17a, Calculations Country, appears below it. It is pre-filled with the suggested country, marked "(recommended)", and you can pick any country from the list of fully supported countries instead. Save the Questionnaire and the valuation recalculates with the new country.
If you change your company country to one with full data, the calculations country is cleared and your own country is used.
To keep your calculations country but change a single value, such as the risk-free rate, use Advanced Settings instead. See the related article on Advanced Settings.
Limits
A calculations country is only used when your country has no full data. A fully supported country is always used directly, and you cannot replace it with another one.
You can only choose a calculations country from the list of fully supported countries.
In the 10-question estimate, question 3a, Calculation Country, appears for countries without full data, and you must select one before you can continue. It is the same setting as Calculations Country in the Questionnaire; only the label differs.
Question 17a in the Questionnaire is available on every plan, including the free plan.
Changing individual values in Advanced Settings is not available on the free plan.
If you started with AI Discovery or Document Upload, the suggested calculations country is applied for you. Change it afterwards in the Questionnaire.
If your country cannot be matched to a known country, or has no pairing, the calculations use the United States. Check question 17 in the Questionnaire and set your country.
Common questions
Does the calculations country change where my company is registered?
No. Your selected country is stored separately and is still shown as your company country. The calculations country feeds the country-based inputs listed above.
Why was my country paired with a country in another region?
Pairings are chosen one country at a time from the countries with full data, so the match is not always a neighbour. If you think another country fits your business better, select it in question 17a.
Why don't I see question 17a in the Questionnaire?
It only appears when the country in question 17 has no full data. It is also hidden while the Show only unanswered switch is on.
Will changing the calculations country change my valuation?
Usually, yes. The risk-free rate, market risk premium, survival rates, tax rate, Scorecard average valuation and Checklist maximum valuation all come from that country, so the valuation range moves with them.