Why Your Startup Should Care About Revenue Multiples by@sarathcp92
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Why Your Startup Should Care About Revenue Multiples

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Revenue 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.

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