Equidam

APRIL 26, 2025

Critiquing Unsuitable Methods for High-Growth Startups Several traditional or overly simplistic methods fail to adequately capture the unique characteristics of technology startups. butcher, barber) where assets are tangible and customer acquisition straightforward, it breaks down for technology startups.

Discounted Cash Flow 59

Discounted Cash Flow Terminal Value Book Value Beta 59

Equilest

SEPTEMBER 14, 2024

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.

Business Valuation 40

Business Valuation Specific Risk Technology Comps 40

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] 8] , [9] , [41] , [44] This involves maximizing risk-adjusted returns on each investment. [55]

Discounted Cash Flow 64

Discounted Cash Flow Terminal Value Marketability EBITDA 64

Equidam

MAY 2, 2025

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.

Comps 64

Comps Marketability Technology EBITDA 64