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9 Startup Valuation Methods: 5 to Use, 4 to Avoid

Equidam

Critiquing Unsuitable Methods for High-Growth Startups Several traditional or overly simplistic methods fail to adequately capture the unique characteristics of technology startups. butcher, barber) where assets are tangible and customer acquisition straightforward, it breaks down for technology startups.

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Weighted Average Cost of Capital Explained – Formula and Meaning

Valutico

This model takes into account a variety of factors, such as risk-free rate, beta, and expected market returns. Cost of equity (or “discount rate”), which considers the expected rate of return given current market conditions and the risk associated with investing in the company. A beta of 1.0

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Weighted Average Cost of Capital Explained – Formula and Meaning

Valutico

This model takes into account a variety of factors, such as risk-free rate, beta, and expected market returns. Cost of equity (or “discount rate”), which considers the expected rate of return given current market conditions and the risk associated with investing in the company. A beta of 1.0

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Weighted Average Cost of Capital Explained – Formula and Meaning

Valutico

This model takes into account a variety of factors, such as risk-free rate, beta, and expected market returns. Cost of equity (or “discount rate”), which considers the expected rate of return given current market conditions and the risk associated with investing in the company. A beta of 1.0

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Appraiser Newsroom - Untitled Article

Appraiser Newsroom

Kevin holds an MBA in finance from Georgia State University and a Bachelors in Chemical Engineering from the Georgia Institute of Technology. He is member of the Beta Gamma Sigma Honor Society, Financial Executives International, and the National Association of Corporate Directors (NACD).

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How to Categorise a Startup (for Valuation)

Equidam

Categorisation poses a significant challenge in startup valuation, with investors and founders frequently mixing up markets, business models, industries, and underlying technologies. This helps investors align their expectations and strategies with the sector-specific funding dynamics, comparative growth rates, and broader investor sentiment.

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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] Equidam utilizes country-specific MRP data calculated by Professor Damodaran. [23]