Remove 2023 Remove Risk-free Rate Remove Terminal Value
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Disagreements and First Principles: The Pushback on my Tesla Valuation

Musings on Markets

The first of the is as companies scale up, there will be a point where they will hit a growth wall, and their growth will converge on the growth rate for the economy. Their arguments, though, are that I am over estimating value, and their critiques can be summarized below.

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Startup Valuation: The Ultimate Guide

Equidam

10] , [23] , [2] Discount Rate: The rate used to discount future cash flows is typically the cost of equity, calculated via the Capital Asset Pricing Model (CAPM): Cost of Equity = Risk-Free Rate + Beta * Market Risk Premium. [23] 29] TV = (Final Year EBITDA * Industry Multiple * Final Year Survival Rate).

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Startup Valuation: The Ultimate Guide for Founders

Equidam

” [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] [17].