The VC method

The investor estimates the company’s value at exit, often a multiple of forecast revenue, and divides it by the target multiple of money (10x, for example) to reach today’s post-money valuation. Dilution expected from later rounds is then allowed for.

It suits companies with little operating history, where a DCF has few reliable inputs. The answer rests on the exit assumption and the required return, so it is usually cross-checked against comparables.