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The Role of Industry Assignment in Business Valuation: A Comprehensive Guide

Equilest

Different industries have unique risk profiles, growth trajectories, and financial benchmarks that directly affect the business’s worth. Industry-Specific Risks and Opportunities Every industry comes with specific risks and opportunities.

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9 Startup Valuation Methods: 5 to Use, 4 to Avoid

Equidam

Comparable Transactions (as a Primary Method): This method, often referred to as “comps,” involves applying valuation multiples (e.g., This bridges the gap between theoretical valuation principles and the specific risk profile of startups.

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Down Round Valuation: How to Survive and Protect Your Equity (2025)

Equidam

Checklist Method Validation – Document achievement of specific risk-reduction milestones – Show progress on de-risking the business since your last funding 4.

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Startup Valuation: The Ultimate Guide

Equidam

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]

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How to Use Comparables Effectively in Startup Valuation

Equidam

In the context of startup valuation, “comparables” (often shortened to “comps”) refer to companies that are used as benchmarks to help estimate the value of the startup in question. Early-stage comps focus on potential, while later-stage comps incorporate more financial performance data.

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