Remove Comps Remove Fair Market Value Remove Risk-free Rate
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Startup Valuation: The Ultimate Guide

Equidam

with Section 409A) require companies to establish the Fair Market Value (FMV) of their common stock through a formal valuation process. [6] 23] Equidam uses country-specific risk-free rates (10-year government bonds) and market risk premiums (sourced from Damodaran). [23]

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Startup Valuation: The Ultimate Guide for Founders

Equidam

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] Discount Rates / Risk Premiums: The discount rate used in DCF analysis (often the WACC) incorporates elements sensitive to market conditions. [21]