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Mahesh Reddy

Semi qualified CMA (...ย โ€ขย 9m

Hey founder๐Ÿ‘‹ Ever wondered how startups figure out their worth? Let me break down the Discounted Cash Flow (DCF) methodโ€”itโ€™s easy! Whatโ€™s DCF? It calculates a businessโ€™s current value by predicting its future cash flows and adjusting for risk using a "discount rate." This is especially useful for startups with strong growth potential. Example: A startup expects โ‚น50 lakh yearly for 3 years. With a 10% discount rate: - Year 1 = โ‚น45.45L - Year 2 = โ‚น41.32L - Year 3 = โ‚น37.56L Total Value (DCF)** = โ‚น1.24 crore ๐ŸŽ‰

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