Hey founder๐ Ever wondered how startups figure out their worth? Let me break down the Discounted Cash Flow (DCF) methodโitโs easy! Whatโs DCF? It calculates a businessโs 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 โน50 lakh yearly for 3 years. With a 10% discount rate: - Year 1 = โน45.45L - Year 2 = โน41.32L - Year 3 = โน37.56L Total Value (DCF)** = โน1.24 crore ๐
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