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). The first is 1. Ce = Cost of Equity. B = Beta. (Rm

Discounted Cash Flow 52

Discounted Cash Flow Terminal Value Weighted Average Cost of Capital Net Present Value 52

Equidam

JUNE 30, 2025

Updated Market Conditions Inputs – Risk-free rates: Now 4-5% vs. near-zero during ZIRP – Market risk premiums: Adjusted for current volatility and country-specific factors – Survival rates: Updated data reflecting current market conditions 2. Here’s how Equidam approaches this: 1.

Equity 59

Equity Marketability Risk-free Rate Start-ups 59

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

Discount Rates / Risk Premiums: The discount rate used in DCF analysis (often the WACC) incorporates elements sensitive to market conditions. [21] 21] [22] [24] [27] The cost of equity component includes the market risk premium the excess return investors expect for investing in the broader market over a risk-free rate.

Discounted Cash Flow 52

Discounted Cash Flow Marketability Risk Premium Start-ups 52