Remove Intangible Assets Remove Terminal Value Remove Weighted Average Cost of Capital
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9 Startup Valuation Methods: 5 to Use, 4 to Avoid

Equidam

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.

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M&A Valuation Methods: Your Essential Guide with 7 Key Methods

Valutico

This rate typically reflects the weighted average cost of capital (WACC) which accounts for the risk associated with the future cash flows and the capital structure of the company. The terminal value can be estimated using the perpetuity growth model or the exit multiple approach.