Startup company valuation can be calculated by using several methods. The two most common methods are the discounted cash flow method and the comparable company analysis method.

The discounted cash flow method is a method of valuing a company by discounting its expected cash flows to the present value. This method involves estimating the company’s future cash flows, discounting them to their present values, and then summing them up to arrive at the company’s value. The discount rate used to calculate the present value of cash flows will vary depending on the type of company, the industry, and the risk associated with the investment. This method is typically used to value mature companies, as estimating future cash flows is easier when the company has a history of cash flow.

The comparable company analysis method is used to determine the value of a startup company. This method involves comparing the financials and operating metrics of a startup company to publicly traded companies in the same industry. The financials and operating metrics of the comparable companies are then used to determine the startup’s value. This method is often used for companies that have little or no operating history, as it can be used to establish a baseline valuation for the company.