Risk Premium 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. This incorporates the risk-free rate, a market risk premium specific to the company’s country, and Beta ($beta$).
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. In short, I am assuming that the price cuts and cost pressures of the fourth quarter are more representative of what Tesla will face in the future, as competition steps up.
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] typically involves a new valuation negotiation. [5]
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