Startup Valuation
Business Valuation for Start ups & Young Growth Companies
Business Valuation for Start ups & Young Growth Companies
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ESTIMATING COST OF EQUITY
You have started you company with intention of
retunes on you capital that you have employed ,
bank FD has 5% Return where as return on you
business will be 25% to 30 % who is this calculated ?
Cost of equity = Rf (Risk free rate of return ) + Beta ×
(market rate of return – risk free rate of return)
Beta is the risk factor
The above rate shall for discounting the future cash
flows , assuming the company has no debt
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