Resources

What it is: Values each business component independently, then combines them into a unified enterprise view.

When to use: Use when your company has distinct lines of business with different growth and margin profiles.

Limitations: Can become sensitive to segment assumptions and may overstate precision if segment data is weak.

What it is: Applies early-stage qualitative checkpoints to estimate value before strong revenue history exists.

When to use: Use in pre-revenue and very early traction stages where future potential is clearer than financial history.

Limitations: Less grounded in hard revenue comparables and dependent on qualitative judgment discipline.

What it is: Discounts projected cash flows into present value using capital cost and terminal assumptions.

When to use: Use once operating data quality supports reasonable multi-year projection confidence.

Limitations: Highly sensitive to discount rate and terminal value assumptions.

What it is: Uses earnings-based market multiples to anchor value to comparable company behavior.

When to use: Use when EBITDA quality and comparables are mature enough for meaningful benchmarking.

Limitations: Weak fit for earlier companies without stable EBITDA.

What it is: Frames value through exit potential, return requirements, and stage-adjusted benchmark factors.

When to use: Use in venture fundraising contexts where pricing aligns to return profiles and peer stage ranges.

Limitations: Can underrepresent company-specific nuances if used in isolation.