Startup & Unicorn Growth Valuation

TL;DR

This paper introduces the growth average U1, a novel valuation method for recently IPOed companies that compares their revenues and profits to benchmark stocks, aiding in peer comparison.

Contribution

The paper presents the growth average U1, a new linear extrapolation method for valuing and benchmarking startup and unicorn companies against their peers.

Findings

The growth average U1 effectively benchmarks recent IPO companies.

Linear extrapolation provides a simple valuation approach.

Method facilitates peer comparison among startups and unicorns.

Abstract

How do you value companies which have IPOed recently? How do you compare them amongst their peers? Valuing companies using a linear extrapolation of their revenues and profits leads to an ingenious method to benchmark stocks against each other. Here we present such a method, dubbed the growth average U1.