Remove 2023 Remove Comps Remove Terminal Value
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The Relevance of Historical and Forecast Periods in a Business Valuation

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2023–2027) Year Revenue ($M) EBITDA Margin EBITDA ($M) CapEx ($M) FCFF ($M) 2023 11.0 Assumptions Forecast Period: 2023–2027 WACC: 10% Terminal Growth Rate: 3% Final Year FCFF (2027): $1.8M Assumptions Forecast Period: 2023–2027 WACC: 10% Terminal Growth Rate: 3% Final Year FCFF (2027): $1.8M

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Startup Valuation: The Ultimate Guide

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23] Terminal Value Approaches: Since forecasting cash flows indefinitely is impractical, DCF methods estimate cash flows for an explicit period (e.g., 3-5 years [3] , [24] ) and then calculate a “Terminal Value” (TV) representing the value of all cash flows beyond that point.

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Startup Valuation: The Ultimate Guide for Founders

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” [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] 2] [15] [17].