Remove Discounted Cash Flow Remove Fair Market Value Remove Market Risk
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Startup Valuation: The Ultimate Guide for Founders

Equidam

11] The pricing often references the last primary round’s valuation or a formal 409A valuation, but negotiation considering company performance and market conditions is common. [11] Discount Rates / Risk Premiums: The discount rate used in DCF analysis (often the WACC) incorporates elements sensitive to market conditions. [21]

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ESOP Valuation: Common Mistakes and Best Practices

Equidam

From a valuation standpoint, the central question becomes : What is the fair market value of the equity being granted through the ESOP? By presenting a conservative but defensible valuation, the startup can mitigate risk. Risk Factors and Growth Potential Technical Risk : Is your product still in R&D?

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Startup Valuation: The Ultimate Guide

Equidam

with Section 409A) require companies to establish the Fair Market Value (FMV) of their common stock through a formal valuation process. [6] The formula is Present Value (Post-Money Valuation) = Potential Exit Value / (1 + Required ROI)^n , where ‘n’ is the number of years to exit. [8]