Equidam

APRIL 26, 2025

Furthermore, any quantitative valuation method, particularly the Discounted Cash Flow (DCF) approach, is highly sensitive to the underlying assumptions about growth rates, discount rates, and terminal values. This sensitivity can lead to the “garbage in, garbage out” problem if assumptions are unrealistic or manipulated.

Discounted Cash Flow 59

Discounted Cash Flow Terminal Value Book Value Beta 59

Valutico

MAY 6, 2024

These methods provide a relative measure of a company’s value and are widely used due to their market-based nature. The most common market-based valuation methods are the Comparable Companies Analysis (Comps) and the Precedent Transactions Analysis. This high leverage is why it’s called a “leveraged” buyout.

Discounted Cash Flow 52

Discounted Cash Flow Precedent Transaction Analysis Weighted Average Cost of Capital Comparable Company Analysis 52

Equidam

APRIL 22, 2025

23] , [24] , [25] This average serves as a starting point, which is then adjusted upwards or downwards based on the specific startup’s relative strengths and weaknesses across several key criteria. [21] 21] , [24] , [25] , [26] Qualitative traits are treated as building blocks contributing portions of this maximum potential value. [26]

Discounted Cash Flow 64

Discounted Cash Flow Terminal Value Marketability EBITDA 64

Equidam

APRIL 22, 2025

1] Unlike valuing established public companies with long track records and stable earnings, startup valuation operates in a realm of high uncertainty. [2] Valuation directly determines how much ownership (equity) a founder gives up in exchange for capital investment. [4] typically involves a new valuation negotiation. [5] 2] [15] [17].

Discounted Cash Flow 52

Discounted Cash Flow Marketability Risk Premium Start-ups 52