Equidam

APRIL 26, 2025

Valuation as a Process, Not Just a Number A common misconception is that startup valuation aims to pinpoint a single, definitive “right” number representing the company’s price. Comparable Transactions (as a Primary Method): This method, often referred to as “comps,” involves applying valuation multiples (e.g.,

Discounted Cash Flow 59

Discounted Cash Flow Terminal Value Book Value Beta 59

Equidam

APRIL 22, 2025

1] [4] It’s an exercise in assessing potential [6] , requiring investors to place bets on a future that is, by definition, uncertain. [14] ” De-Risking the Future: The Role of Current Traction, Team, and Milestones If valuation is about the future, what role does the present play? 2] [15] [17].

Discounted Cash Flow 52

Discounted Cash Flow Marketability Risk Premium Start-ups 52

Equidam

APRIL 22, 2025

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] 23] Risk-Free Rate: Tied to government bond yields (e.g.,

Discounted Cash Flow 64

Discounted Cash Flow Terminal Value Marketability EBITDA 64