F&B and Agriculture Multiples
Hi I would like to ask regarding on multiples for F&B and Agriculture
Would EV/EBITDA or EV/Revenue for F&B be a good valuation multiple? What about Revenue/Unit square of restaurant space? Is there any other example?
I am quite confused with Agriculture Is EV/EBITDA be good multple? I am thinking of EV/kg of produce or EV/unit square of agriculture land
Both are going to be primarily EV/EBITDA focused. EV/Revenue is used for higher-growth, emerging companies (think "better-for-you" brands, snacking, etc. ).
Ag is such a huge space you kind of have to narrow it down - are you talking Big 6, ag biotech, precision ag, fertilizer? Both EV / rev and EV / EBITDA can work depending on the sub-industry, but Tony is right in that frequently you have to use rev multiples.
Do you recommend any Ag or F&B primers?
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