PE manager-driven multiple expansion calculation

here's a familiar company that expands its valuation multiple from 5 to 6X over the hold to measure derivative model multiple expansion we first calculate all the differences in averages here plugging them into the formula tells us that the 1.0x increase in M creates 11.69 million of value for the fund now let's say over the same period the prevailing Market multiples increased from 7 to 8X just like the company's valuation multiple this is a 1.0x increase however when we calculate muu we see that the company's worth 75% of the broader Market valuation at T2 versus only 71.4% of the market valuation at T1 this Improvement suggests that the GP or management team did something right they captured more of the market valuation and the 3.6% increase in me should lead to positive intrinsic multiple expansion okay when we take that 1.0x increase in the market multiple and the 73.2% average me and plug them into the formula we get Market multiple expansion of 8.56 million likewise when we take the 3.6% increase in Mew in the average Market multiple of 7.5x we get intrinsic multiple expansion of 3.13 million and as promised we can add these two together and they give us the expected total multiple expansion value of 11.69 million that we see above