Remove Comps Remove EBITDA Remove Specific Risk
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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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The Role of Industry Assignment in Business Valuation: A Comprehensive Guide

Equilest

Different industries have unique risk profiles, growth trajectories, and financial benchmarks that directly affect the business’s worth. Industry-Specific Risks and Opportunities Every industry comes with specific risks and opportunities.

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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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How to Use Comparables Effectively in Startup Valuation

Equidam

In the context of startup valuation, “comparables” (often shortened to “comps”) refer to companies that are used as benchmarks to help estimate the value of the startup in question. Early-stage comps focus on potential, while later-stage comps incorporate more financial performance data.

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