Comps Risk-free Rate Specific Risk 
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.
Equidam
JUNE 30, 2025
DCF with Startup Adaptations – Build realistic financial projections with appropriate survival rate adjustments – Use current market discount rates that reflect the higher interest rate environment – Apply proper illiquidity discounts for private company shares 3. Here’s how Equidam approaches this: 1.
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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