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. The terminal value is estimated by applying a market-based multiple to a financial metric of the final projected year.

Discounted Cash Flow 59

Discounted Cash Flow Terminal Value Book Value Beta 59

Valutico

OCTOBER 20, 2022

the asset-based approach also known as the cost-based approach, and finally 3. the multiple based or ‘ comps ’ (comparable company analysis) approach. Explaining The Terminal Value. Well, the DCF method uses a number called the Terminal Value to represent this assumed sum total. . The first is 1. forecast.

Discounted Cash Flow 52

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

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.

Discounted Cash Flow 52

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

Equidam

APRIL 22, 2025

” [1] [2] [4] [15] [19] It estimates a future exit value (often based on projected earnings and industry multiples) and works backward, using the high ROI targets VCs require (due to portfolio risk), to determine what the company could be worth today to justify that future return. [15] 2] [15] [17].

Discounted Cash Flow 52

Discounted Cash Flow Marketability Risk Premium Start-ups 52