Equidam

APRIL 26, 2025

Comparable Transactions (as a Primary Method): This method, often referred to as “comps,” involves applying valuation multiples (e.g., Discount Rate (Cost of Equity): The rate used to discount future cash flows reflects the riskiness of the investment.

Discounted Cash Flow 59

Discounted Cash Flow Terminal Value Book Value Beta 59

Valutico

OCTOBER 20, 2022

the multiple based or ‘ comps ’ (comparable company analysis) approach. Rf = Risk-free Rate. Rm – Rf) = Equity Market Risk Premium. Now, we need to calculate the discount rate. . Risk free rate (can use 10y Treasury). Market Return. The first is 1. B = Beta. (Rm

Discounted Cash Flow 52

Discounted Cash Flow Terminal Value Weighted Average Cost of Capital Net Present Value 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

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]

Discounted Cash Flow 52

Discounted Cash Flow Marketability Risk Premium Start-ups 52