Equidam

APRIL 26, 2025

Furthermore, any quantitative valuation method, particularly the Discounted Cash Flow (DCF) approach, is highly sensitive to the underlying assumptions about growth rates, discount rates, and terminal values. This bridges the gap between theoretical valuation principles and the specific risk profile of startups.

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

Peak Business Valuation

NOVEMBER 24, 2024

Discounted Cash Flow (DCF) Method The DCF method predicts a business’s future cash flows. Once we estimate the company’s future cash flows, we use a discount rate to find its present value. At Peak , these factors help us determine the company-specific risk premium.

Business Valuation 52

Business Valuation Fair Market Value Appraisal Discounted Cash Flow 52

Musings on Markets

FEBRUARY 10, 2021

If you put all your money in one or the other of these companies, you are exposed to all these risks, but if you spread your bets across a dozen or more companies, you will find that company-specific risk gets averaged out. But what if the company is looking at a project in Nigeria or Bangladesh? as mature markets. for Ford).

Risk-free Rate 52

Risk-free Rate Risk Premium Start-ups Equity 52

Equidam

MAY 14, 2025

By clearly defining whether a startup is at the Idea, Development, Startup, Expansion, Growth, or Maturity stage, Equidam calibrates valuation methods (including qualitative methods like Scorecard and Checklist, and quantitative methods such as Venture Capital (VC) and Discounted Cash Flow (DCF) models) accordingly.

Risk Premium 64

Risk Premium Risk-free Rate Beta Market Risk 64

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