Remove Beta Remove Comps Remove Risk Premium
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9 Startup Valuation Methods: 5 to Use, 4 to Avoid

Equidam

Comparable Transactions (as a Primary Method): This method, often referred to as “comps,” involves applying valuation multiples (e.g., This incorporates the risk-free rate, a market risk premium specific to the company’s country, and Beta ($beta$).

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SWS Group: The Breakdown

Appraisal Rights

The court refused to put any weight on petitioners’ comparable companies analysis, finding that the comp set diverged too much from SWS in terms of size, business lines, and performance to be meaningful. With regard to beta, the court found fault with both side’s approach.

Beta 40
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Discounted-Cash-Flow-Analysis: Your Complete Guide with Examples

Valutico

the multiple based or ‘ comps ’ (comparable company analysis) approach. Rf = Risk-free Rate. B = Beta. (Rm Rm – Rf) = Equity Market Risk Premium. Cp = Cost of Equity Premium. Risk free rate (can use 10y Treasury). The first is 1. Ce = Cost of Equity. Cost of Debt. Market Return. Cost of Equity.

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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] 23] Risk-Free Rate: Tied to government bond yields (e.g.,