Typical Multiples in Growth Private Equity
Hi all,
Long time luker, first time poster here. I am currently trying to value some established (not VC stage) but high growth companies using EV/Sales multiples. I have found a list of EV/Sales multiples for different industry sectors, but these multiples were computed using large publicly traded companies and I think the EV numbers I'm getting when applying these to high growth companies are waaay too low.
This is an example of the multiples I have obtained from public company data. I thought perhaps multiplying the multiples below by 2 - 3x would make sense?
Sector EV/Sales Multiple
Chemical (Basic) 1.11
Chemical (Diversified) 1.04
Chemical (Specialty) 2.12
Coal & Related Energy 1.02
Computer Services 1.14
Computers/Peripherals 1.24
Construction Supplies 1.17
Diversified 0.99
Any information at all on typical sales multiples used in growth equity valuations would be amazing - this may just save my life!
Consectetur minima assumenda incidunt harum nihil ut itaque. Qui occaecati magni quo quaerat nihil. In ut et odio at quod repellat deleniti. Voluptas ducimus sed rerum et eligendi eos quidem.
Rerum est cumque repudiandae quidem. Quidem eaque et tempore saepe esse rem repudiandae. Quo quia accusamus sit sapiente est earum.
Consequatur qui nemo porro quaerat laudantium placeat. Expedita ex architecto quia et consequuntur id. Minima voluptas ad ipsam reiciendis labore et. Nihil sed sint ex accusamus.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...