A Study on the Discounted Cash Flow Valuation of Startups in EDTECH

1.               SONTE NANDINI (24UJ1E00J9) Student of 2nd Year MBA,

Malla Reddy Engineering College and Management Sciences, Medchal, Hyderabad – 501 401.

2.               DR INAGANTI BADE SAHEB, Professor, Dept of MBA in

Malla Reddy Engineering College and Management Sciences, Medchal, Hyderabad – 501 401.

ABSTRACT

Startup valuation is increasingly important in the developing EdTech industry because investors and founders require reliable estimates of business value. This study examines the application of the Discounted Cash Flow (DCF) method to EdTech startups, focusing on projected cash flows, growth, risk, investment decisions, and valuation challenges. Primary data were collected from 120 respondents through a structured questionnaire, while secondary information was obtained from books, journals, startup reports, annual reports, and related sources. Percentage analysis was used for interpretation. The findings indicate that DCF supports investment decisions, while forecast uncertainty remains a limitation. Regular forecasting and complementary valuation methods are recommended.

Keywords: Discounted Cash Flow, Startup Valuation, EdTech, Financial Forecasting, Investment Decisions