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9 Startup Valuation Methods: 5 to Use, 4 to Avoid

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revenue multiple, ARR multiple, EBITDA multiple) derived from recent acquisitions or funding rounds of supposedly similar companies. Discount Rate (Cost of Equity): The rate used to discount future cash flows reflects the riskiness of the investment. Valuation / Annual Recurring Revenue, or Valuation / EBITDA).

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How to Categorise a Startup (for Valuation)

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This calibration directly impacts expected returns, required ROI, survival rates, and appropriate liquidity discounts, significantly refining risk assessment. Country: Argentina Operating from Argentina influences extrinsic risk factors due to regional economic conditions, market size, regulatory environment, and currency stability.

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Startup Valuation: The Ultimate Guide

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4] , [3] , [5] Unlike mature, publicly listed companies which are easier to compare using multiples of current earnings (like EBITDA) [3] , startups must be valued based on their projected future; moats, margins and the perceived strength of their future growth trajectory. [3] 23] Risk-Free Rate: Tied to government bond yields (e.g.,