Equidam

APRIL 26, 2025

Valuation as a Process, Not Just a Number A common misconception is that startup valuation aims to pinpoint a single, definitive “right” number representing the company’s price. Discount Rate (Cost of Equity): The rate used to discount future cash flows reflects the riskiness of the investment.

Discounted Cash Flow 59

Discounted Cash Flow Terminal Value Book Value Beta 59

Valutico

FEBRUARY 27, 2024

The discount rate effectively encapsulates the risk associated with an investment; riskier investments attract a higher discount rate. Different types of discount rates such as risk-free rate, cost of equity, or cost of debt, are used contextually in financial analysis.

Discounted Cash Flow 52

Discounted Cash Flow Risk Premium Risk-free Rate Beta 52

Appraisal Rights

AUGUST 8, 2017

In its valuation decision, the chancery court examined three metrics – deal price, comparable companies, and a discounted cash flow analysis – and gave equal one-third weight to each of those inputs. to that figure assumed, without accompanying record support, that another period of robust, above-market growth was on the way.

Discounted Cash Flow 40

Discounted Cash Flow Comparable Company Analysis Risk-free Rate Going Concern Value 40

Musings on Markets

FEBRUARY 10, 2021

What is a hurdle rate for a business? There are multiple definitions that you will see offered, from it being the cost of raising capital for that business to an opportunity cost , i.e., a return that you can make investing elsewhere, to a required return for investors in that business.

Risk-free Rate 52

Risk-free Rate Risk Premium Start-ups Equity 52

Equidam

APRIL 22, 2025

1] [4] It’s an exercise in assessing potential [6] , requiring investors to place bets on a future that is, by definition, uncertain. [14] 15] [52] [53] [56] Discounted Cash Flow (DCF) Methods: These methods view potential through the lens of the company’s intrinsic ability to generate cash over time. [21]

Discounted Cash Flow 52

Discounted Cash Flow Marketability Risk Premium Start-ups 52

Equidam

APRIL 22, 2025

8] , [2] Discounted Cash Flow (DCF) Methods: Concept: DCF is a cornerstone of traditional financial valuation. [11] 11] , [1] , [24] The premise is that a company’s value is equal to the sum of all its expected future free cash flows, discounted back to their present value. [3]

Discounted Cash Flow 64

Discounted Cash Flow Terminal Value Marketability EBITDA 64