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venture capital valuation method

venture capital valuation method a venture capitalist wants to estimate the value of a new venture. the venture is not expected to produce net income or earnings until the end of year 5 when the net income is estimated at 1,600,000.00. A publicly traded competitor or comparable firm has current earnings of 1,000,000.00 and a market capitalization value of 10,000,000.00. estimate the value of the new venture at the end of year 5. show your answer using both the direct comparison method and the direct capitalization method. what assumption are you making when using the current price-to -earning relationship for the comparable firm?

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