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. butcher, barber) where assets are tangible and customer acquisition straightforward, it breaks down for technology startups.

Discounted Cash Flow 59

Discounted Cash Flow Terminal Value Book Value Beta 59

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

Equidam

APRIL 22, 2025

.” De-Risking the Future: The Role of Current Traction, Team, and Milestones If valuation is about the future, what role does the present play? While not a reward for the past, a startup’s current state its traction, team, technology, and milestones is critically important. [4] This de-risks the product/technology aspect.

Discounted Cash Flow 52

Discounted Cash Flow Marketability Risk Premium Start-ups 52