Hey founder👋 Ever wondered how startups figure out their worth? Let me break down the Discounted Cash Flow (DCF) method—it’s easy! What’s DCF? It calculates a business’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 ₹50 lakh yearly for 3 years. With a 10% discount rate: - Year 1 = ₹45.45L - Year 2 = ₹41.32L - Year 3 = ₹37.56L Total Value (DCF)** = ₹1.24 crore 🎉
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