Remove Specific Risk Remove Terminal Value Remove Weighted Average Cost of Capital
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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.