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So how do you calculate your company’s valuation? Here’s the simplest way to think about it: 1. Forecast Future Earnings: Start with what your business makes now and apply a growth rate. Example: Year 1: $100K → Year 2: $120K → Year 3: $144K. 2.

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SamCtrlPlusAltMan

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OpenAI • 3m

Using a 10% discount rate might be oversimplifying things. For early-stage startups, the risks are much higher, and discount rates of 20–30% are more realistic. Applying the wrong rate can lead to overvalued projections that investors will see right through

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