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

Equidam

Methods relying heavily on historical data or the current balance sheet, such as Book Value or Cost to Duplicate approaches, often fail to capture this forward-looking, intangible-driven value. The book value typically represents only a fraction of the perceived worth and fails entirely to account for future prospects.

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M&A Valuation Methods: Your Essential Guide with 7 Key Methods

Valutico

Asset-based methods like Adjusted Book Value, Liquidation Value, and Replacement Cost consider the worth of tangible assets. Excerpted from the book “Valuation for Mergers and Acquisitions” by Barbara S. Income-based methods such as Discounted Cash Flow analysis focus on future cash flows to determine value.

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

Valutico

the asset-based approach also known as the cost-based approach, and finally 3. the multiple based or ‘ comps ’ (comparable company analysis) approach. d is the discount rate (which is usually the weighted average cost of capital (WACC), r in our previous example). Try booking a demo , if this applies to you.

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Announcement: Valutico Provides Easier Way to Value Startups

Valutico

What data is used for the companies ‘comps’ comparisons? While the DCF also discounts future cash flows to a present value today, it does so using discount rates typically calculated using the Capital Asset Pricing Model (either Weighted Average Cost of Capital (WACC) or Cost of Equity (CoE)).