Equidam

APRIL 26, 2025

Information asymmetry is also common; founders possess deep insights into their operations and vision, while investors must assess the opportunity based on limited data and their own market expertise. 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

Equilest

JUNE 27, 2024

Preparing for the Valuation Process Gathering Financial Documents Before you start the valuation process, you need to gather all relevant financial documents. This includes income statements, balance sheets, and cash flow statements. By comparing the company to industry benchmarks, you can see how it stacks up against its peers.

Business Valuation 40

Business Valuation Intangible Assets Discounted Cash Flow Asset-based Approach 40

Musings on Markets

FEBRUARY 10, 2021

In this post, I will start by looking at the role that hurdle rates play in running a business, with the consequences of setting them too high or too low, and then look at the fundamentals that should cause hurdle rates to vary across companies.

Risk-free Rate 52

Risk-free Rate Risk Premium Start-ups Equity 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] This premium rises when perceived market risk increases. [27]

Discounted Cash Flow 52

Discounted Cash Flow Marketability Risk Premium Start-ups 52

Equidam

APRIL 22, 2025

11] , [4] , [1] , [22] These intangible elements are considered valuable in themselves as they form the foundation for future growth and cash generation. [1] Instead of adjusting an average, it assigns value increments for achieving these milestones, summing them up to a maximum potential pre-money valuation benchmarked for the region. [21]

Discounted Cash Flow 64

Discounted Cash Flow Terminal Value Marketability EBITDA 64

Equidam

JANUARY 24, 2025

This valuation becomes particularly important when you decide to set up an ESOP (Employee Stock Ownership Plan). saving on employee taxes) overshadow the need for a robust, well-supported valuation that will also stand up to investor scrutiny in the next financing round. Industry Reports : Validate your market size and potential.

Compliance 59

Compliance Equity Fair Market Value Discounted Cash Flow 59