The Seven Deadly Sins of Start‐Up Valuation

Franck Bancel, Bruno Martinaud and Henri Philippe

Journal of Applied Corporate Finance, 2021, vol. 33, issue 3, 125-129

Abstract: Valuing start‐ups is different from most other valuations because the information available on start‐ups is limited, the business models are usually not yet stable, and maturity may be far off. In this setting, it is difficult to identify listed assets or comparable transactions, much less provide credible forecasts of cash flows. Despite such difficulties, the value of the shares in a start‐up can be estimated by applying the standard financial framework while adapting the valuation methodology to the context. To help practitioners value start‐ups successfully, the authors highlight “seven common errors to be avoided” from their practical experience.

Date: 2021
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1111/jacf.12469

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:jacrfn:v:33:y:2021:i:3:p:125-129

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1078-1196

Access Statistics for this article

Journal of Applied Corporate Finance is currently edited by Donald H. Chew Jr.

More articles in Journal of Applied Corporate Finance from Morgan Stanley
Bibliographic data for series maintained by Wiley Content Delivery ().