Valuation of Tom.com is indeed very challenging due to the infancy of the industry and reliance on too many assumptions. Majority of tech and internet companies are traded on NASDAQ, so if we look at the total return, we see that in 1999 the total return was 86% compare to 1998 of 40%, which is an indicator that tech and internet companies are very volatile and risky at the same time with high potential of being very profitable for aggressive investors. Also looking at the performance of Tom's close peer group, we believe that Perkin's assumptions are very reasonable. For example, if we look at the annual CAGR (one of the main drivers of the company's value) for Amazon.com in 1999, it is 94%; however, cumulative implied CAGR in the past four years is 652.7%, for Ebay it is 745.4%. Therefore, we believe that Perkin's assumptions for CAGR for Tom.com is very conservative, it is only 80%, which we believe is low considering the following facts: large Chinese population, economic growth, high investor and producer interest in China, and large Chinese population living outside China interested in the events happening in China.