Equidam

APRIL 26, 2025

Their value proposition is typically rooted not in past performance but in future potential. 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.

Discounted Cash Flow 59

Discounted Cash Flow Terminal Value Book Value Beta 59

Valutico

SEPTEMBER 13, 2023

Key methods include the Income Approach, which estimates future cash flows, the Market Approach, comparing with similar businesses, and the Asset Approach, valuing tangible and intangible assets. Approximations, negotiations, and considering illiquidity premiums help mitigate these challenges.

Discounted Cash Flow 52

Discounted Cash Flow Comparable Company Analysis Asset-based Approach Intangible Assets 52

Valutico

AUGUST 10, 2023

The challenge with this approach when valuing SMEs is finding comparable businesses due to their unique characteristics. Asset-based Approach : This method functions like an inventory check, summing up a company’s tangible and intangible assets and subtracting liabilities, resulting in the company’s net asset value.

Discounted Cash Flow 52

Discounted Cash Flow Asset-based Approach Intangible Assets Business Valuation 52

Equidam

APRIL 22, 2025

10] , [23] , [2] Discount Rate: The rate used to discount future cash flows is typically the cost of equity, calculated via the Capital Asset Pricing Model (CAPM): Cost of Equity = Risk-Free Rate + Beta * Market Risk Premium. [23] to 2.5% [23] , [2] ) to ensure mathematical validity. [2]

Discounted Cash Flow 64

Discounted Cash Flow Terminal Value Marketability EBITDA 64