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Say for ABC Ventures projected VCF over a five years are as under:- Year VCF [in $] 1 2,00,000 2 2,50,000 3 3,50,000 4 4,00,000
Say for ABC Ventures projected VCF over a five years are as under:-
Year | VCF [in $] |
1 | 2,00,000 |
2 | 2,50,000 |
3 | 3,50,000 |
4 | 4,00,000 |
5 | 5,00,000 |
In the 6th year projected VCF is $ 5,40,000. Discounting rate over the explicit cash flow period of 5 years is 30%, and from 6th year onward constant discounting rate is 15% growth rate of cash flow is 7%. Please calculate the Pre money valuation of the venture.
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