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Negotiating Your Funding Round: Focus on Value, Not Price

Equidam

Market Conditions: In capital-rich environments like 2021, valuations were high due to investor competition. Valuation Methodology : Five valuation methodsScorecard, Checklist, Discounted Cash Flow with Long-Term Growth, Discounted Cash Flow with Multiple, and Venture Capital Methodoffer a weighted average valuation range.

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WeWork experienced a tumultuous first year after its IPO, how will the journey continue?

Valutico

Despite its prominent position in the market, the company is struggling with financial challenges, which has led to a significant drop in its share price of over 80% since its IPO through a Special Purpose Acquisition Company (SPAC) in October 2021. The Discounted Cash Flow analysis produced a value of $1 billion using a WACC of 6.4%.

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Can Salesforce return to its former lofty heights, after slumping 50% from its all time high?

Valutico

The market leader for CRM software is currently trading at around $133 per share, down more than 50% from its all-time-high of $300 per share, achieved in November 2021. . billion, an increase of 14% compared to Q3 in 2021. The Discounted Cash Flow analysis produced a value of $99.5 Recent Financial Performance.

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Can Salesforce return to its former lofty heights, after slumping 50% from its all time high?

Valutico

The market leader for CRM software is currently trading at around $133 per share, down more than 50% from its all-time-high of $300 per share, achieved in November 2021. . billion, an increase of 14% compared to Q3 in 2021. The Discounted Cash Flow analysis produced a value of $99.5 Recent Financial Performance.

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Deja Vu #10: Valuation Theory is the Same for Businesses and Business Interests: V =f(CF, G, and R)

Chris Mercer

Business appraisers routinely use the discounted cash flow model to value entire businesses. Deja Vu #9: Pre-IPO Discounts Do Not Provide Valid Evidence for Marketability Discounts. The Discounted Cash Flow Model for Businesses. The Discounted Cash Flow Model for Interests of Businesses.

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Data Update 4 for 2021: The Hurdle Rate Question!

Musings on Markets

In that post, I computed the equity risk premium for the S&P 500 at the start of 2021 to be 4.72%, using a forward-looking, dynamic measure. A low hurdle rate world : At the start of 2021, you are looking at hurdle rates that are lower than they have ever been in history, for most currencies.

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Will Home Depot continue to benefit from the COVID-era high DIY demand?

Valutico

billion in 2021. Despite a -21% performance in 2022 to date, Home Depot’s share price gained 64% over the past five years, with particularly good performance during the 2020-2021 COVID years. It achieved an all time high of $415 in December 2021 and is currently trading at $314 per share with a market cap of $319 billion.