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A few thoughts: 1) You could use Relative and/or Absolute valuation. IMO, the easier would be relative since it's difficult to pin down a future growth rate.
by ryansmccoy 7y ago
A few thoughts:
1) You could use Relative and/or Absolute valuation. IMO, the easier would be relative since it's difficult to pin down a future growth rate. For relative, find some companies which you might be able to compare against, similar business model/size, growth trajectory, and that has raised $$.
2) There is no guaranteed method to predict the future and it depends on what you need the estimate for and, again, would try to find a comparative company to use as a guide for growth rate.
- findingnimo 7y agoOk thanks I will do that. But doesn’t a figure of 50% annual churn seem much too high? To calculate the new ARR would I subtract this percentage from the ARR? It would be such an immense help if you have some figures I could compare my answers to!