Equidam

APRIL 26, 2025

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).

Discounted Cash Flow 59

Discounted Cash Flow Terminal Value Book Value Beta 59

Valutico

OCTOBER 20, 2022

FCF n is the free cash flow in year n, being the last forecast period. g is the terminal growth rate. d is the discount rate (which is usually the weighted average cost of capital (WACC), r in our previous example). Some practitioners will use an average of both methods. . Ce = Cost of Equity.

Discounted Cash Flow 52

Discounted Cash Flow Terminal Value Weighted Average Cost of Capital Net Present Value 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