Equidam

JULY 23, 2025

Lack of Methodology or Standard: A vague clause (“valuations as determined by GP”) doesn’t specify how to determine value. Especially for early-stage startups, there are multiple methods one could use – cost basis, last round price, discounted cash flow, comparables, you name it. Choose your target return (ROI).

Discounted Cash Flow 64

Discounted Cash Flow Start-ups Marketability Comps 64

Chris Mercer

JULY 15, 2022

Business appraisers routinely use the discounted cash flow model to value entire businesses. Deja Vu #9: Pre-IPO Discounts Do Not Provide Valid Evidence for Marketability Discounts. The Discounted Cash Flow Model for Businesses. The Discounted Cash Flow Model for Interests of Businesses.

Discounted Cash Flow 52

Discounted Cash Flow Terminal Value Dividends Appraisal 52

Valutico

SEPTEMBER 19, 2022

We’re dealing here with one of the primary valuation methodologies—the Discounted Cash Flow (DCF) method. One critical component of the terminal value is the perpetual growth rate. Y our growth forecast shouldn’t look like a hockey stick… generally speaking.

Business Valuation 78

Business Valuation EBIT EBITDA Discounted Cash Flow 78

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

The formula is Present Value (Post-Money Valuation) = Potential Exit Value / (1 + Required ROI)^n , where ‘n’ is the number of years to exit. [8] 8] , [2] Discounted Cash Flow (DCF) Methods: Concept: DCF is a cornerstone of traditional financial valuation. [11]

Discounted Cash Flow 64

Discounted Cash Flow Terminal Value Marketability EBITDA 64