Valuation methodology

The Equidam algorithm: methods, parameters and data sources

18 articles in this collection
Written by Luca Trevisan

How Equidam computes valuation

Overview of the 5 methods and their weights in the valuation

Written by Luca Trevisan
Updated this week

Approaches and methods

Qualitative methods

Introduction to the methods and their perspective

Written by Luca Trevisan
Updated over a week ago

Qualitative methods: Scorecard

Valuing a startup through comparable peers

Written by Luca Trevisan
Updated this week

Qualitative methods: Checklist

Qualitative traits as building blocks of valuation

Written by Luca Trevisan
Updated this week

VC method

The quick and versatile practitioners' method

Written by Luca Trevisan
Updated this week

DCF methods

The traditional company valuation: a company is worth the cash that it is going to generate in the future

Written by Luca Trevisan
Updated this week

DCF methods: DCF with LTG

Future cash flows under the assumption of steady, constant growth

Written by Luca Trevisan
Updated this week

DCF methods: DCF with multiple

Terminal value as a potential exit

Written by Luca Trevisan
Updated this week

Parameters and data sources

Private transactions database

Real market pre-money valuations to define benchmarks for Scorecard and Checklist methods

Written by Luca Trevisan
Updated over a week ago

EBITDA multiple

Nature and data sources of the multiple used in the VC and the DCF with multiple methods

Written by Luca Trevisan
Updated over a week ago

Required ROIs of the VC method

The nature and determinants of the method's discount rate

Written by Luca Trevisan
Updated this week

Survival rates

Failure risk sources and impact on startup valuation

Written by Luca Trevisan
Updated over a week ago

Illiquidity discount

Accounting for difficult liquidation of private company shares

Written by Luca Trevisan
Updated over a week ago

LTG rate

Constant growth rate of the cash flows once a company reaches a stable state

Written by Luca Trevisan
Updated over a week ago

DCF discount rate

Meaning and components of the DCF discount rate

Written by Luca Trevisan
Updated this week

Risk free rates

Combining country risk and inflationary expectations

Written by Luca Trevisan
Updated over a week ago

Market risk premium

A country’s average premium for equity investments

Written by Luca Trevisan
Updated over a week ago

Beta

The main risk measure of the DCF discount rate and its components

Written by Luca Trevisan
Updated over a week ago