>Recently, someone thought their equity is too low because, they just did number_of_shares*409A valuation What was their mistake? 1 - they weren't factoring in

>Recently, someone thought their equity is too low because, they just did number_of_shares*409A valuation What was their mistake? 1 - they weren't factoring in the profit on their strike price? 2 - they forgot that Fair Market Value ideally goes up through each round? 3- I'm missing something