P10 Industries Inc. (PX)

[Tim Eriksen]

Don't know how you guys are coming up with $1.20 to $1.38 based on some multiple times cash flow per share.

Good question.
Two reasons:
1. You are using change in cash, which includes operations, investing and financing. I am using operations, which is the accepted approach. P10 used $12 million generated during the year to make an acquisition. You don't want to penalize them for that in valuing the business. They also benefited from $3 million cash from financing which you wouldn't want to include in the calculation, since the business didn't earn it.

2. Since AUM is sticky I would argue that you annualize the most recent quarter versus including a quarter prior to AUM climbing.