Risk-free Rate Start-ups Terminal Value 
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. We calculate the cost of equity using the Capital Asset Pricing Model (CAPM).
Brian DeChesare
MAY 3, 2023
When I started offering financial modeling training , I never expected to get questions about a methodology like the Dividend Discount Model (DDM). It can be useful for certain companies, such as power and utility firms and midstream (pipeline) operators in oil & gas … …but it’s also much harder to set up and use than a standard DCF.
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Musings on Markets
FEBRUARY 2, 2023
The first of the is as companies scale up, there will be a point where they will hit a growth wall, and their growth will converge on the growth rate for the economy. Firms with large revenues find it difficult to maintain high growth, as they scale up. On both fronts, I am more cautious.
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]
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]
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