Tech Start-up valuation method - question
Hi everybody.
I am trying to solve a business case and I came across what seems to be a very odd valuation method that I need to use. I simply can't understand how I can use it in a logical way. Can any of you make sense of it? Thanks a lot.
There are 3 major factors that influence the valuation with different weights as described below:
- 50% of the valuation multiple is dependent on revenues
- 25% is dependent on the company growth.
- 25% is dependent on the market factors.
To offer a bit more background, the company is offering a SaaS B2B solution, had revenues of 100K for the year, has a current valuation of 2M and received seed funding of 400K. The target would be to increase the valuation for the next 6 months by 50% and my task would be to show how it could be done. The issue I am having is with the method of valuation.
Any help would be much appreciated.
Thank you
Cupiditate dolores iure aut occaecati doloremque quidem possimus. Nihil quisquam dolorem aut. Doloribus et dolorem tempore blanditiis ab deserunt. Iure assumenda occaecati fugit molestias. Sint veritatis beatae aliquid inventore adipisci aliquam.
Quibusdam harum animi quis quibusdam omnis sint. Qui voluptas libero officiis earum soluta delectus.
Voluptatem architecto non ex pariatur debitis incidunt nobis. Aliquid quaerat quia iure aut ipsa. Earum et enim tempora pariatur aliquid. Aperiam tempora aliquid facere. Non veniam eaque possimus aliquid harum sunt.
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...