Market-Expected Return on Investment Bridging Accounting and Valuation
Morgan Stanleymorganstanley.comSaved by Daniel Bakalarz
Market-Expected Return on Investment Bridging Accounting and Valuation
Saved by Daniel Bakalarz
The Venture Capital Method: This method calculates valuation strictly from the viewpoint of investor returns. It works backward from the anticipated sale value, or Terminal Value, of the startup (five or so years in the future). You determine Terminal Value by (1) estimating the company’s earnings in the year of sale and (2) multiplying that number
... See more