Analysis of the most frequently used startups- faluation methods and their main dDrawbacks: the switcho case

Abstract

The main purpose of the thesis is to critically examine the most widely used valuation methods and to investigate the most effective tool for evaluating start-ups. The methodologies discussed are the discounted cash flow model the comparable method, and the venture capital method. Each method was applied to an Italian start-up called Switcho, with the goal of analysing its business model and assessing its evaluation. The results highlight that there is no ideal appraisal for start-ups, however the VC method gives more reliable results than the DCF model and comparable method.