Understanding the Basics of the ESOP Valuation Process

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At Catamount, the annual valuation process is a pivotal event that determines the fair market value of shares within our Employee Stock Ownership Plan (ESOP). Led by an independent third party, this process occurs each spring and calculates our stock value and share price. Simply put: the valuation calculates the share price, which determines how much the ownership stake is worth, and directly impacts the future wealth generation of each employee-owner. 


  • Third-Party Valuation: An independent third-party conducts a thorough annual review of Catamount to determine the company’s value.  
  • Comprehensive Analysis: The review includes an examination of year-to-date financial performance, current project pipeline, and both internal and external value drivers.  
  • Executive Engagement: Interviews with key stakeholders, including the CEOs and CFO among other executives, provide crucial insights into Catamount’s operational landscape.  
  • Valuation Calculation: The valuation company further consolidates financial data and additional research to arrive at a final valuation, subject to approval by the Trustee. The valuation is based on two primary components:  
  1. Enterprise Value: Reflecting the ongoing operational worth of Catamount 
  2. Equity Value: Catamount’s enterprise value + cash – debt + nonoperation assets/liabilities 

While the details of the valuation process can be a bit complex, it’s important for all employee-owners to understand how their daily actions impact the ESOP. Employee ownership is a distinctive aspect of Catamount’s identity and a testament to our shared commitment to creating a culture where everyone is heard and has the opportunity to thrive. The ownership mentality is what sets us apart and allows us to focus on providing best-in-class service to our project partners every single day!  

To #ActLikeAnOwner, it’s essential for our employee-owners to make informed decisions to collectively support personal and company growth. Acting like an owner means approaching every day looking for chances to go above and beyond, support your fellow employee-owners, seek out opportunities for growth, and take ownership of outcomes.