Equilest

JUNE 27, 2024

This method often uses Discounted Cash Flow (DCF) analysis or EBITDA multiples to estimate value based on expected earnings. Market-Based Approach The market-based approach compares the company to similar businesses that have been sold recently.

Business Valuation 40

Business Valuation Intangible Assets Discounted Cash Flow Asset-based Approach 40

Equidam

APRIL 22, 2025

11] The pricing often references the last primary round’s valuation or a formal 409A valuation, but negotiation considering company performance and market conditions is common. [11] 11] [13] Internal/Compliance (e.g., 11] [13] Internal/Compliance (e.g., This premium rises when perceived market risk increases. [27]

Discounted Cash Flow 52

Discounted Cash Flow Marketability Risk Premium Start-ups 52

Equidam

JANUARY 24, 2025

Introduction: Why ESOP Valuations Matter Startup founders often focus on product development, market fit, and fundraisingrightly so. ESOP valuations serve several purposes: Tax Compliance : Governments expect stock options granted to employees to be valued at a fair price. You can strike the right balance by following the points below.

Compliance 59

Compliance Equity Fair Market Value Discounted Cash Flow 59

Equidam

APRIL 22, 2025

with Section 409A) require companies to establish the Fair Market Value (FMV) of their common stock through a formal valuation process. [6] It’s crucial for tax compliance and ensuring options have real economic value. a 409A valuation for tax compliance [14] ) cannot be directly substituted for another (e.g.,

Discounted Cash Flow 64

Discounted Cash Flow Terminal Value Marketability EBITDA 64