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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 terminalvalues. butcher, barber) where assets are tangible and customer acquisition straightforward, it breaks down for technology startups.
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] 1] , [21] , [23] , [29] The terminalvalue is estimated by applying a relevant market multiple (e.g.,
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