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How do you calculate valuation? (alien.top)

submitted 1 year ago by username48378645@alien.top to c/entrepreneur@indiehackers.space

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I thought my company's valuation would be 5 years of my average revenue. But I heard it's actually 2 years. What's the right way to know this?

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[–] admajesty@alien.top 1 points 1 year ago

There's no one-size-fits-all answer for this. It heavily depends on your industry, EBITDA, profit margins, etc. Team size, assets, so on and so on.

Your best bet is to start researching how companies are evaluated on YouTube, then check out a few calculators you can find in Google. It's also a good idea to Google search big companies in your industry that were recently acquired and work your way backwards from there.