Remove EBITDA Remove Marketability Remove Terminal Value
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Revenue and EBITDA Multiples: The role of comparison in startup valuation

Equidam

Imagine comparing products in the supermarket, where different box sizes and a range of pricing may make it hard to determine the value; labels that give you the price per kg of product can greatly simplify that process. A shortcut that many investors attempt to use is to apply a multiple.

EBITDA 69
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9 Startup Valuation Methods: 5 to Use, 4 to Avoid

Equidam

This approach encourages dialogue focused on the business fundamentals the team, the market opportunity, the product, the financial projections rather than anchoring the conversation to arbitrary figures potentially derived from selectively chosen, and often inappropriate, market comparisons.

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[PARAMETERS UPDATE P5.8] EBITDA MULTIPLES

Equidam

You can refer to the table below to see how the EBITDA multiples for the industries available on the Equidam platform will change on February 29th, 2024. These are applied to compute the Terminal value in the DCF method with Multiple and the potential exit value in the VC method. 6.38 ↓ -29.42% Food Markets 9.04

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[PARAMETERS UPDATE P5.4] EBITDA MULTIPLES

Equidam

The EBITDA multiples in 2021 not only reached, but much exceeded pre-pandemic levels. It is too early to determine the reasons why the EBITDA multiple for footwear companies surpasses 33X, while the multiple for MedTech firms exceeds 35X. On the one hand, the market’s excess liquidity might be a factor. EBITDA Multiple.

EBITDA 52
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[PARAMETERS UPDATE P5.6] EBITDA MULTIPLES

Equidam

You can refer to the table below to see how the EBITDA multiples for the industries available on the Equidam platform will change on February 23, 2023. These are applied to compute the Terminal value in the DCF method with Multiple and the potential exit value in the VC method. 20.99 ↓ -43% Advertising & Marketing 12.74

EBITDA 40
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Discounted-Cash-Flow-Analysis: Your Complete Guide with Examples

Valutico

But here, we use what interest we could get from an alternative investment in the market, called the Market Rate. Discount Factor (using Market Rate: r=10%). But first, a quick aside, which you can feel free to skip if you want to jump ahead: Why Do We Use the Market Rate to Calculate the Discount Factor? You get: Year.

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The Dividend Discount Model (DDM): The Black Sheep of Valuation?

Brian DeChesare

The DDM is more grounded because it’s based on the company’s actual distributions and potential future value. And it values the company today based on the present value of its dividends and that potential future value (either the stock price or the Equity Value via the Terminal Value calculation).