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You are using the VC Method to estimate the value of a company that is growing, but currently losing money. The current year EBITDA is
You are using the VC Method to estimate the value of a company that is growing, but currently losing money. The current year EBITDA is -$1,000. The "exit" is projected to be in year 4. The valuation multiple is 6.5. The cost of capital is estimated at 20%. The following are your EBITDA estimates for future years. What is your estimate of the company's current enterprise value using the VC method? Year 1 EBITDA: -500 Year 2 EBITDA: 100 Year 3 EBITDA: 750 Year 4 EBITDA: 1200 Year 5 EBITDA: 2000
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