For the typical business plan having current and early cash outflows and later-stage cash inflows, the VCSC and DDA methods will typically give lower valuations than the MDM and PDM.

Question

Quizplus · Accepted Answer

The VCSC (Venture Capital Method) and DDA (Discounted Dividend Approach) methods usually give lower valuations because they focus on the current and future cash flows, while the MDM (Market Data Method) and PDM (Precedent Transaction Analysis Method) often take into account comparable market data and historical transaction prices, leading to higher valuations.

For the Typical Business Plan Having Current and Early Cash