A complementary valuation model and exit multiples

Hyoung‐Goo Kang

doi:10.1016/j.frl.2025.107182

A complementary valuation model and exit multiples

2025-06-01

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Hyoung‐Goo Kang

DOI：10.1016/j.frl.2025.107182

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We propose a valuation integrating growth dynamics and exit multiples to resolve inconsistencies in traditional models that misalign present valuations with terminal values. Our approach ensures coherence between entry and exit values by combining intrinsic and relative methods, providing a consistent tool. Particularly for venture capital and private equity, our model clarifies the role of exit multiples in intrinsic valuations.

Keywords:

Discounted cash flow

Exit multiples

Growth dynamics

Valuation

A complementary valuation model and exit multiples

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