Appraisal Beta Terminal Value 
Valutico
SEPTEMBER 13, 2023
SMEs can present challenges with DCF due to limited historical financial data, unreliable information, inadequate financial forecasts, and difficulty in determining terminal value. Another approach is comparing it to similar businesses that have been sold recently, similar to how real estate is appraised.
Equidam
APRIL 22, 2025
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] 1] , [21] , [23] , [29] The terminal value is estimated by applying a relevant market multiple (e.g.,
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