Equidam
APRIL 26, 2025
Comparable Transactions (as a Primary Method): This method, often referred to as “comps,” involves applying valuation multiples (e.g., This incorporates the risk-free rate, a market risk premium specific to the company’s country, and Beta ($beta$).
Equilest
SEPTEMBER 14, 2024
By associating a business with the right industry, evaluators can apply industry-specific benchmarks, market trends, and valuation multiples, ensuring a more accurate assessment of the company’s worth. Comps provide real-world data to anchor valuation models, ensuring that businesses are evaluated against appropriate industry standards.
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Valutico
OCTOBER 20, 2022
the multiple based or ‘ comps ’ (comparable company analysis) approach. Rf = Risk-free Rate. Rm – Rf) = Equity Market Risk Premium. The first is 1. the intrinsic or income-based approach, also known as an entity approach, then there is also 2. Ce = Cost of Equity. B = Beta. (Rm Cp = Cost of Equity Premium.
Equidam
APRIL 22, 2025
Public market valuations, for instance, often influence private market expectations, especially since public markets represent a key exit route for VC investments. [49] Discount Rates / Risk Premiums: The discount rate used in DCF analysis (often the WACC) incorporates elements sensitive to market conditions. [21]
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.,
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