Venture Valuation Flashcards

1
Q

what is the definition of economic value

A

sum of future free cash flows an enterprise/business generates adjusted for risk and TVM

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2
Q

what is the difference between value and price

A
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3
Q

what are the key drivers of value

A
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4
Q

what are some common methods used to estimate value

A
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5
Q

what is the difference in valuation between traditional business model firms vs platform business model

A
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6
Q

what is a platform business model

A
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7
Q

what is stakeholder capitalism

A
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8
Q

private value

A

economic value for owners of the enterprise/business

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9
Q

economic value vs enterprise value

A

economic value: value based on ability to generate cash flows

enterprise value: value of equity and debt of company

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10
Q

what is operating asset value

A

total value of company assets that are directly used for core business operations and generating cash flows

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11
Q

what is an unlevered enterprise

A

funded solely through equity

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12
Q

what is operating asset value if the enterprise is funded solely through equity

A

equivalent to shareholder value

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13
Q

how does expectation play a role in shareholder value

A

drives stock price, stocks are a function of expectation

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14
Q

what is an ETF

A
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15
Q

what is the difference between value and price

A
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16
Q

what is the difference between a mutual fund and an ETF

A
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17
Q

what is a search and matching market

A
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18
Q

what is social value

A
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19
Q

what are Milton freedman’s assumptions under which ‘the social responsibility of business is to increase its profits’

A
20
Q

when should a company depart from intentional profit maximization

A
21
Q

what are the two main valuation methods

A
22
Q

how does a DCF work

A
23
Q

how do multiples valuation work

A
24
Q

what is free cash flow

A
25
Q

what is NOPLAT

A
26
Q

what is net investment

A
27
Q

how to calculate FCF (using noplat)

A
28
Q

what is margin

A
29
Q

what is depreciation

A
29
Q

what is asset turnover

A
30
Q

what is ROIC

A
31
Q

what is g

A
32
Q

what is IR

A
33
Q

how does ROIC and G drive value

A
34
Q

what happens to ventures with small ROIC

A
35
Q

what is a platform business model

A
36
Q

what is a non rival good?

A
36
Q

how is data a non rival good?

A
37
Q

what is a customer acquisition cost

A
38
Q

what is a customer churn

A
39
Q

what is a net promoter score

A
40
Q

what is lifetime value

A
41
Q

what is gross margin

A
42
Q

what is annual recurring revenue or monthly recurring revenue growth

A
43
Q

what is quick ratio

A