Equilest

DECEMBER 3, 2022

EBIT and EBITDA are two measurements of business profitability. Evaluating companies using the DCF (Discounted Cash Flow) method requires capitalizing the Free Cash Flows to the firm (FCFF) at the appropriate discount rate. - the weighted average cost of capital (WACC). . What is EBITDA? TR=Tax Rate.

EBIT 40

EBIT EBITDA Weighted Average Cost of Capital Discounted Cash Flow 40

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. revenue multiple, ARR multiple, EBITDA multiple) derived from recent acquisitions or funding rounds of supposedly similar companies.

Discounted Cash Flow 59

Discounted Cash Flow Terminal Value Book Value Beta 59

FE International

DECEMBER 31, 2021

One of the most thorough ways to value a business is through a DCF analysis , which involves forecasting the free cash flows of the acquisition target and discounting them with a predetermined discount rate, usually the weighted average cost of capital ( WACC ) for the business in question. Earnings-Multiple.

Weighted Average Cost of Capital 52

Weighted Average Cost of Capital Business Valuation Precedent Transaction Analysis Start-ups 52

Equidam

APRIL 22, 2025

2] Startups typically lack significant historical financial data, often operate with negative profits initially, rely heavily on private equity or venture capital rather than traditional bank loans, and face a much higher risk of failure. [1] Understanding Weighted Average Cost of Capital (WACC).

Discounted Cash Flow 52

Discounted Cash Flow Marketability Risk Premium Start-ups 52