Remove Comparable Company Analysis Remove Discounted Cash Flow Remove Specific Risk
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Startup Valuation: Strategies for Early-Stage Venturees

RNC

Discounted Cash Flow (DCF) Method Forecasts upcoming cash inflows and adjusts them to their current value using a discounting method. Sensitive to assumptions about growth and risk. Factors in team quality, size of opportunity, competition, and customer engagement. Commonly used by angel investors.

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Mergers and Acquisitions Valuation Strategies: Unlocking the Secrets to Successful M&A Transactions

Sun Acquisitions

Comparable Company Analysis (CCA): CCA involves comparing the target company to similar publicly traded companies. CTA provides a more industry-specific perspective and is useful when there are limited public comparables. It involves forecasting cash flows and applying a discount rate.