The Equity Kicker

DECEMBER 2, 2015

Mahesh Vellanki from Redpoint put up an interesting post yesterday about ecommerce valuations. At the end of the day a business is worth the net present value of future cash flows, EBITDA is a good proxy for cashflows, and future EBITDA is a function of revenues today, revenue growth and EBITDA margin.

Forecast 60

Forecast eCommerce Net Present Value Revenue 60

crowdSPRING Blog

OCTOBER 12, 2015

In economic valuation, past cost can never be a factor for arriving at a value, and formulas such as NPV (net present value) will never take into account money which has already been spent. Past costs, whether an investment of time or money, should never be used in evaluating a decision.

NPV 48

NPV Net Present Value Small Business Valuation 48

ReadWriteStart

AUGUST 26, 2022

So they have about 60 million customers now, and they have a view of the net present value of each customer when they’re onboarding them and their models to show it. So they have quantifiable risk profiles and ultimately map them to lifetime value, right? That’s a valuation number and pricing number.

Partner 132

Partner Cofounder Retention Acquisition 132

crowdSPRING Blog

OCTOBER 18, 2010

In economic valuation, past cost can never be a factor for arriving at a value, and formulas such as NPV (net present value) will never take into account money which has already been spent. Past costs, whether an investment of time or money, should never be used in evaluating a decision.

Small Business 106

Small Business NPV Net Present Value Valuation 106

BeyondVC

OCTOBER 11, 2007

In other words, as companies mature the valuation of a startup turns from pure strategic value to one where it is based more on actual revenue multiples and market comparable data.

Net Present Value 60

Net Present Value Strategic Investors Early Stage Revenue 60

The Next Web

DECEMBER 16, 2012

That’s given us insight into which valuation methods are good, helping site owners clinch that all-important deal, and which fall short, leaving sites unsold and their owners disappointed. Today I want to walk you through the more successful valuation methods in use now. Common methodologies. The income approach. Asset approach.

Valuation 128

Valuation NPV Net Present Value IRR 128

David Teten

NOVEMBER 15, 2013

Each new investor tends to raise valuations and lower returns for all the other competitive investors. Of course, asset management firms also sell peace of mind, tax minimization, and other services besides just increasing the value of your assets.). I don’t think that a Net Present Value calculation is appropriate for every company.

Management 114

Management Pre-Money Valuation Venture Capital New Hampshire 114