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Breakeven and Payback Period

Bijan Vasigh, Javad Gorjidooz
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Risk-Adjusted Payback Period Valuation for Startup Investment: A Stage-Calibrated Framework with Risk-Monotone Payback Horizons

Startup valuation remains among the most contested problems in finance, owing to absent or negative near-term earnings, extreme uncertainty, and the circularity embedded in the dominant practitioner heuristic: peer-group multiples used to set entry price, followed by DCF reverseengineering to produce post-hoc justification.
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