Remove Beta Remove EBITDA Remove Weighted Average Cost of Capital
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9 Startup Valuation Methods: 5 to Use, 4 to Avoid

Equidam

revenue multiple, ARR multiple, EBITDA multiple) derived from recent acquisitions or funding rounds of supposedly similar companies. This incorporates the risk-free rate, a market risk premium specific to the company’s country, and Beta ($beta$). Beta measures the volatility of the company relative to the market.

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

Valutico

d is the discount rate (which is usually the weighted average cost of capital (WACC), r in our previous example). Some practitioners will use an average of both methods. . Ce = Cost of Equity. B = Beta. (Rm Cp = Cost of Equity Premium. Cost of Debt. Cost of Equity. Market Return.

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Announcement: Valutico Provides Easier Way to Value Startups

Valutico

With Valutico’s new development, practitioners can quickly perform a VC valuation based on EV/Sales, EV/EBITDA, EV/EBIT and P/E multiples as a useful addition to other research on the company and the industry. The calculation of these discount rates are based on the observed betas of similar listed peer companies.