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 over a week ago

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 over a week ago

Qualitative methods: Checklist

Qualitative traits as building blocks of valuation

Written by Luca Trevisan
Updated over a week ago

VC method

The quick and versatile practitioners' method

Written by Luca Trevisan
Updated over a week ago

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 over a week ago

DCF methods: DCF with LTG

Future cash flows under the assumption of steady, constant growth

Written by Luca Trevisan
Updated over a week ago

DCF methods: DCF with multiple

Terminal value as a potential exit

Written by Luca Trevisan
Updated over a week ago

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 over a week ago

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 over a week ago

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