Remove Comparable Company Analysis Remove EBITDA Remove Events
article thumbnail

Which Rule of Thumb Business Valuation is the Best One?

Equilest

For instance, a software company might be valued at 2-4 times its annual revenue.It's a quick way to get a ballpark figure, especially for businesses with steady revenue streams. Multiple of EBITDA EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is often used as a proxy for cash flow.

article thumbnail

How to Use Comparables Effectively in Startup Valuation

Equidam

This approach goes by several names, including Comparable Company Analysis (CCA), the Market Comparable Method, or the Multiples method. EBITDA Multiples: Enterprise Value-to-EBITDA (EV/EBITDA) is used for companies with positive operating earnings, typically at later stages.

Comps 64