Why Your Startup Should Care About Revenue Multiples

Written by sarathcp92 | Published 2021/10/21
Tech Story Tags: revenue-multiple | startup-valuation | revenue-multiples-for-startups | startups | startups-advice | tools-for-startups | startup-lessons | startup-strategy | hackernoon-es

TLDRRevenue multiples are valuation metrics based on company revenue. This works best for startups because revenue is the only stable value compared to all other factors. These multiples provide an opportunity to bypass complicated company valuation calculations based on earnings and cash flows. Early-stage companies are just starting their business process, and it is difficult to account for all components of EBITDA. This gives a holistic picture of the current financial health of a startup. It is a reliable alternative to mainstream, popular valuation metrics that rely heavily on a company’s past financial records.via the TL;DR App

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Written by sarathcp92 | SEO & Growth Strategist - I help businesses increase traffic, rankings, and ROI through data-driven strategies and cutting-edge technologies.
Published by HackerNoon on 2021/10/21