Digital valuation is a complex process that requires a deep understanding of digital business models and value drivers. In this article, Jeff Towson outlines 9 rules for digital valuation in Asia that can help investors and entrepreneurs navigate this complex landscape. By following these rules, you can gain a better understanding of how to value digital companies and identify opportunities for growth in the digital economy.
In podcast 101 (Why DCF Sucks for Digital Valuation), I went through how I use DCF for digital valuation. And I basically argued that much of DCF thinking is a ridiculous attempt at a precision that is not actually possible. As an example, I talked about how projecting my weight vs. my happiness into the […]
Discounted cash flow (DCF) is a common method for valuing businesses. However, DCF is a poor method for valuing digital businesses. This is because digital businesses are characterized by rapid growth, unpredictable cash flows, and network effects. As a result, the assumptions underlying DCF are not met, and the resulting valuations are often inaccurate.
Discounted cash flow (DCF) is a common method for valuing businesses. However, DCF is a poor method for valuing digital businesses. This is because digital businesses are characterized by rapid growth, unpredictable cash flows, and network effects. As a result, the assumptions underlying DCF are not met, and the resulting valuations are often inaccurate.