Decision Tree Analysis is a strategic and visual decision-making tool that plays a crucial role in startup valuation by systematically evaluating the various options and uncertainties associated with a business decision. The importance of Decision Tree Analysis lies in its ability to model complex decision scenarios, incorporating the probabilities of different outcomes and their respective impacts on a startup’s valuation. Decision Tree Analysis aims to provide a structured and dynamic approach for entrepreneurs and investors to assess the potential consequences of their strategic choices, facilitating more informed decision-making. In the early stages of startups, where uncertainties abound and strategic decisions significantly impact future success, Decision Tree Analysis becomes essential. It is widely applicable across industries, including technology, healthcare, and renewable energy, where startups often face dynamic and uncertain market conditions. By visually mapping out decision options, probabilities, and potential outcomes, Decision Tree Analysis enhances strategic planning and aids in risk management. It guides stakeholders in allocating resources effectively, contributing to a more robust and flexible approach to startup estimation in the ever-changing landscape of emerging industries.