Equity valuation: DCF method, Relative value approach, and Venture capital method

Equity valuation: DCF method, Relative value approach, and Venture capital method

	a startup company	a company and its industry with a long history
DCF method	less appropriate (*1)	appropriate
Relative value approach	less appropriate (*2)	appropriate
Venture capital method	appropriate

(*1) It would be difficult to assess its future cash flows.
(*2) There are likely few comparables to benchmark against.