Remove Comps Remove EBITDA Remove Risk Premium
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9 Startup Valuation Methods: 5 to Use, 4 to Avoid

Equidam

Comparable Transactions (as a Primary Method): This method, often referred to as “comps,” involves applying valuation multiples (e.g., revenue multiple, ARR multiple, EBITDA multiple) derived from recent acquisitions or funding rounds of supposedly similar companies.

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

Valutico

the multiple based or ‘ comps ’ (comparable company analysis) approach. Practitioners assume the business is sold as a multiple of some financial metric like EBITDA, based on what they can see today for other businesses that were sold, and what these comparable trading multiples are. . Rf = Risk-free Rate. EV/EBITDA Multiple.

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Startup Valuation: The Ultimate Guide

Equidam

4] , [3] , [5] Unlike mature, publicly listed companies which are easier to compare using multiples of current earnings (like EBITDA) [3] , startups must be valued based on their projected future; moats, margins and the perceived strength of their future growth trajectory. [3] in 3-7 years).

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Startup Valuation: The Ultimate Guide for Founders

Equidam

2] Startups typically lack significant historical financial data, often operate with negative profits initially, rely heavily on private equity or venture capital rather than traditional bank loans, and face a much higher risk of failure. [1] This premium rises when perceived market risk increases. [27] 2] [15] [17].

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Putting Global Risk In Perspective: Q&A With BNP Paribas’ Meghan Robson

Global Finance

In the second quarter, growth in Ebitda [earnings before interest, taxes, depreciation and amortization] outpaced interest expense growth for high-yield corporates. That is finally starting to stabilize as we’ve lapped higher rates and have easier comps there. There are certain sectors that we think are offering better risk/reward.