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Ep 17: Koji Bratcher - SME Valuation Concepts [From An Expert]

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How to Calculate a Discount Rate for a Startup

In valuation, we're only looking at a single company. So, if we're trying to come up with a discount rate for one company, now we have to modify that and that's where we call it an MCAPM. It's thrown all these acronyms at you, the modified capital asset pricing model. That's where we're adding things like size premium. You know, there are resources out there, Duffin Phelps now publishes a navigated product, nothing that, you know, you guys have to use in the search funder world. For a small private company, you could be anywhere from,. you know, 15% which is kind of typical for a discount rate

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