Valuing Early Stage Companies–NPV Method: Introduction/Risk-Adjusted Discount Rate (VIDEO)

Chaplinsky, Susan

F-1956 | Published July 15, 2020 | Duration 06:00 Video

Collection: Darden School of Business

Product Details

This video introduces the net present value (NPV) method as a technique for valuing a privately held company. This video estimates the value of a fictitious company, UltraTech, Inc., using NPV. This video also compares how the cost of capital is used to discount risk using both the NPV method and the VC method, and what accounts for the difference.

0