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 incorporates the risk-free rate, a market risk premium specific to the company’s country, and Beta ($beta$).

Discounted Cash Flow 59

Discounted Cash Flow Terminal Value Book Value Beta 59

Equidam

APRIL 22, 2025

23] , [24] , [25] This average serves as a starting point, which is then adjusted upwards or downwards based on the specific startup’s relative strengths and weaknesses across several key criteria. [21] 21] , [24] , [25] , [26] Qualitative traits are treated as building blocks contributing portions of this maximum potential value. [26]

Discounted Cash Flow 64

Discounted Cash Flow Terminal Value Marketability EBITDA 64

Equidam

APRIL 22, 2025

1] Unlike valuing established public companies with long track records and stable earnings, startup valuation operates in a realm of high uncertainty. [2] Valuation directly determines how much ownership (equity) a founder gives up in exchange for capital investment. [4] This premium rises when perceived market risk increases. [27]

Discounted Cash Flow 52

Discounted Cash Flow Marketability Risk Premium Start-ups 52