Startup Valuation Calculator
Value a startup using DCF, revenue multiple, or the VC method — with a recommended range.
How this is calculated
DCF discounts each year's projected cash flow back to today, then adds a terminal value covering all cash flows beyond the projection period, estimated with the Gordon Growth Model. Revenue multiple simply applies a comparable multiple to current revenue. The VC method works backward from an investor's target return: it estimates a future exit value, divides by the target multiple to get today's post-money valuation, then subtracts the investment to get pre-money.
Start from your market size: the Market Sizing Calculator can feed your SOM directly into the Revenue Multiple method via the "Value my startup" link. For the discount rate input, the WACC Calculator provides the appropriate rate for established businesses; early-stage startups typically use 25-40%. See Startup Survival Probability to stress-test the risk assumptions behind your discount rate.
Frequently asked questions
- What valuation method should I use?
- DCF suits businesses with predictable, projectable cash flows. Revenue multiple is a fast comparable-based estimate, common for early SaaS and growth companies. The VC method works backward from a target return and is what most venture investors actually use when pricing a round.
- What discount rate is appropriate for a startup?
- Established businesses typically use a WACC of 8-12%. Early-stage startups carry far more risk, so investors typically apply 25-40% discount rates — higher for pre-revenue or pre-product companies, lower as the business matures and de-risks.
- What is terminal value?
- The value of all cash flows beyond your explicit projection period, estimated with the Gordon Growth Model by assuming cash flows grow at a constant rate forever after the final projected year, then discounted back to today.
- What is the VC method?
- A valuation approach that starts from an investor's required return: it estimates a future exit value, divides by the target return multiple to get post-money valuation today, then subtracts the investment amount to get pre-money valuation.
- Can I use this in my own app?
- Yes — every calculator on Stupidly Clever has a matching REST API and MCP tool that runs the same underlying logic.