Quick Summary: Startup Valuation (DCF Model)

Discounted Cash Flow (DCF) is a valuation method used to estimate the value of an investment based on its expected future cash flows. In the context of Indian startups and Income Tax Rule 11UA, a DCF valuation certified by a Merchant Banker is often required to justify the premium on share issues and avoid 'Angel Tax' complications.

How to use the Startup Valuation (DCF Model)

  1. Project Free Cash Flows

    Input expected revenue, expenses, and capital expenditure for the next 5-10 years.

  2. Select Discount Rate (WACC)

    Input the cost of equity and debt to calculate the weighted average cost of capital.

  3. Apply Terminal Growth

    Estimate the long-term growth rate of the business after the projection period.

  4. Review Enterprise Value

    See the total net present value of all future cash flows.

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Regulatory Disclaimer · FY 2026-27

Last verified May 2026

Nature:Calculator platform and is NOT a SEBI-registered Investment Adviser. All calculations are indicative.

Risk:"Investments in securities market are subject to market risks. Read all related documents carefully before investing."

Consult a SEBI-registered IA or CA for personalised advice.

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