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How to Valuation a Company's Growth Cycle
The venture capital approach to valuation focuses on the overall market potential and capturing a share of it, while the pure value approach looks at current earnings/nDifferent valuation methods should be used depending on the phase of the business growth cycle/nFor early-stage startups, total addressable market analysis is more appropriate than DCF models or multiples/nAs a company grows and matures, multiple analysis becomes more relevant/nReliable free cash flow is an indicator of a mature company where cash flow models can be useful/nUsing the wrong valuation method at the wrong phase of a company's growth cycle can lead to trouble