Remove Specific Risk Remove Start-ups Remove Terminal Value
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9 Startup Valuation Methods: 5 to Use, 4 to Avoid

Equidam

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. The terminal value is estimated by applying a market-based multiple to a financial metric of the final projected year.

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Startup Valuation: The Ultimate Guide

Equidam

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] 1] , [21] , [23] , [28] The LTG rate is industry-specific and constrained to be below the long-term economic growth rate (e.g.,