How do you size your market?
How to calculate the size of the opportunity/market? the approach considered to size the market would help founders to understand/assess the total opportunity and also to design the features targeting the opportunity.
finance
Relative Valuation: Do you compare yourself?
Relative Valuation prices an asset compared to similar assets in market. The process, though not sophisticated, yields better conclusions with less information and short turn-around. The key is to identify the comparable assets; look at their standardised prices and take a call.
How much cash flows to expect?
Investor looking to invest in a company needs to examine the free cash flows returned to the firm or to the equity component. Arriving at the free cash flows generated by the company and forecasting the future cash flows is an essential component of valuation.
Valuation: Key Ingredients
Intrinsic valuation identifies the net present value of the free cash flows to the firm by incorporating the risk and growth rate of such cash flows. Growth rate looks at the growth of the cash flows over the period, and discount rate converts the future cash flows to their present value.
Why do you need to value?
Do we know the value of the apartment that is up for sale? By how much is the price of the highly marketed IPO of a new age company over its intrinsic value? From fair value accounting to venture capital investing, from acquisition price to borrowing terms – we need to understand the fundamentals of valuation.