Musings on Markets

FEBRUARY 10, 2021

From a hurdle rate perspective, this implies that companies, where the marginal investors (who own a lot of stock and trade that stock) are diversified, should incorporate only macroeconomic or market risk into hurdle rates. US , Europe , Emerging Markets , Japan , Australia/NZ & Canada , Global ) 2.

Risk-free Rate 52

Risk-free Rate Risk Premium Start-ups Equity 52

Equidam

APRIL 22, 2025

” [1] [2] [4] [15] [19] It estimates a future exit value (often based on projected earnings and industry multiples) and works backward, using the high ROI targets VCs require (due to portfolio risk), to determine what the company could be worth today to justify that future return. [15] Applying Discounted Cash Flow Valuation.

Discounted Cash Flow 52

Discounted Cash Flow Marketability Risk Premium Start-ups 52

Equidam

APRIL 22, 2025

8] , [2] Discounted Cash Flow (DCF) Methods: Concept: DCF is a cornerstone of traditional financial valuation. [11] 11] , [1] , [24] The premise is that a company’s value is equal to the sum of all its expected future free cash flows, discounted back to their present value. [3]

Discounted Cash Flow 64

Discounted Cash Flow Terminal Value Marketability EBITDA 64