Review of valuation models and identification and ranking of valuation indicators of startup companies in the idea stage in Iran based on AHP mathematical method

Document Type : Original Article

Authors

1 Department of Business Management, Rasht Branch, Islamic Azad University, Rasht, Iran

2 Department of Business Management, Rasht Branch, Islamic Azad University, Rasht, Iran.

Abstract

. Today, due to the rapid growth of technology in the world and the tendency of companies towards startup companies, the category of valuation is of particular importance. If we want to divide startup companies into two general categories (1- Startup companies in the idea stage 2- Startup companies in the post-idea stage), Net assets value (NAV), book value (BV), present value of cash flows (DDM), etc., but these methods are not applicable to the first category, which is in the early stages and lacks cash flows and physical assets. To valuate the first type of companies, methods such as valuation of Bill Payne scorecard, valuation of Dave Brexes, aggregation of risk factors are used, so researchers according to the conditions and in accordance with existing financial, tax, administrative, jurisprudential and religious laws, etc. In the country, experts, forensic experts, stock valuation experts, etc. have been researched and the dimensions, criteria and valuation indicators of startup companies in the idea stage, which lack cash flows and physical assets, have been identified through mathematical methods. AHP are ranked, as a model in the future Suitable for evaluating such companies to be used by users who currently have no model in Iran. Researchers, after identifying the valuation indicators of startup companies in the idea stage and compatible with the Iranian environment, have proceeded to rank these indicators, the results of which are given at the end of the article.

Keywords

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International Journal of Finance & Managerial Accounting
Volume 7, Issue 27 - Serial Number 27
October 2022
Pages 139-150

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