Evaluation of young companies / startups based on the multiples approach and DCF method

Abstract

In this paper the concept of startups is explained in more detail, occasions for the valuation of these type of companies and the procedures for determining the company value presented. Two processes, the Multiples approach and the DCF method are applied to one example case. Finally, the results of both methods are compared and evaluated. For future work, there are also further possibilities for company valuation by young companies.