this post was submitted on 11 Nov 2023
1 points (100.0% liked)

Entrepreneur

0 readers
1 users here now

Rules

Please feel free to provide evidence-based best practices, share a micro-victory, discuss strategy and concepts with a frame work, ask for feedback, and create professional conversation. Treat every post as if you're at work and representing the best version of yourself.

founded 1 year ago
MODERATORS
 

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?

you are viewing a single comment's thread
view the rest of the comments
[–] notpitching@alien.top 1 points 1 year ago

Nobody really cares what your revenue is. They care what your profits are.

A reasonable estimate is 3x owner benefit if it's small.

If you have meaningful assets it would increase the multiple.