Adding Adequacy to the Growth Variable in DCF

It’s always a challenge to make a quality estimation of inputs to the valuation model like the one utilized in the Startup Valuator. If your company plans to acquire venture capital you should be ready to get the most adequate information about the market. That’s a topical problem for emerging market segments with low entry barriers and high rates of business failures. And e-commerce is a good example.

Monte Carlo #2 | The Practical Implementation of The Model

Let's continue the topic. Today I am going to show an example of the practical implementation of the model, which was described in the previous post. The calculations are made in Maple. If you are not familiar with this framework I highly recommend you to read the book of J.S. Dagpunar 'Simulation and Monte Carlo'. You can also download samples here.

Valuation of startups with the Monte Carlo simulation model

The issue of the valuation of internet companies at the seed stage is quite controversial. Companies of this category are considered to be quiet risky from the point of view of the investor, but the risk is not only the probability of loss, but big capital gains as well.

Using comparables for the valuation of internet startups at emerging markets

PART #1. Introduction to the problem.

In the next post series will talk about well known method of comparables, a good way to get quick estimation of the value of the company or it’s equity. 

Using comparables for the valuation of internet startups at emerging markets

PART #2. Country Risks

As it was mentioned in the previous post we deal with a theoretical Russian Company which is getting compared to the set of mature rivals In the USA. Obviously markets are different. There are higher political and economic risks in Russia. We should take this fact into account. Let’s have a try.