Valuation of early-stage companies

KPMG Quarterly Brief - International Valuation Newsletter 2021-Q2

KPMG Quarterly Brief - International Valuation Newsletter 2021-Q2


Start-up founders, entrepreneurs, venture capitalists and state-owned agencies bolstering young businesses are forging the world of tomorrow through innovative products, services and solutions. Their efforts advance our quality of life and make the world a better place.

That’s why we’re focusing on early-stage companies in this edition of our KPMG´s Quarterly Brief - International Valuation Newsletter, where we explore the many ways, they give us hope for a brighter future.

We address typical questions that arise when valuing early-stage companies:

  • Which methodology should be used to properly capture the value potential of an early-stage company?
  • How is the specific risk profile of early-stage businesses reflected in a valuation, even when they have zero sales or have not yet obtained required regulatory approvals?
  • Is there a way to assess potential value development over time?

In addition, we include our regular summary of current key capital market data such as index performance, sector multiples, risk-free rate for Austria, market risk premium for Austria as well as country risk premiums and inflation adjusted risk-free rates for the BRICS countries, which can all be found in the final section of the Quarterly Brief.