This is calculator to calculate the net present value, Weighted Averaged Cost of Capital and Value of Venture Business.
The formula for determining the present value of a perpetuity is as follows:
NPV = -Investment +ΣCF_lastyear / (1+Discount rate) ^lastyear +TV / (1+Discount rate) ^lastyear
TV=CF_lastyear (1 + Growth rate) / (Discount rate - Growth rate)
CF_lastyear=Cash flow of the last year of projection period
Guess IRR(%) is a number that you guess is close to the result of IRR.
The value of the whole company before the transaction, called the “Pre-money valuation” is just the share price times the number of shares outstanding before the transaction.
And the value of "Post-money valuation " is as follows:
Post-money Valuation = Pre-money Valuation + Investment
(Investment=Share Price * Shares Issued)
The relation between Target IRR and EXIT Value is as follows,
Net income * PER * Ratio of Shareholding (at Exit year )= (1+ IRR)^year * Investment
To achieve Target IRR,
Required share ratio = (1+Target IRR)^investment period * Investment / Net income *PER