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d is the discount rate (which is usually the weightedaveragecost of capital (WACC), r in our previous example). Some practitioners will use an average of both methods. . Ce = Cost of Equity. B = Beta. (Rm Cp = Cost of Equity Premium. Cost of Debt. Cost of Equity. Market Return.
With Valutico’s new development, practitioners can quickly perform a VC valuation based on EV/Sales, EV/EBITDA, EV/EBIT and P/E multiples as a useful addition to other research on the company and the industry. The calculation of these discount rates are based on the observed betas of similar listed peer companies.
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