Remove Discounted Cash Flow Remove Fair Market Value Remove Systematic Risk
article thumbnail

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 ā€˜n’ is the number of years to exit. [8]