How To Value a Medtech Company Pre-Revenue?
Does anyone know how to value a medtech company pre-revenue?
I am assuming it has something to do with addressing the TAM, then looking at revenue build, then some how looking at comps, then building out cash flows based off of the TAM for a DCF, usually longer than 5-10 years. But I don't know specifics, or if this general thought process is right... please let me know!
That’s right - devil is in the detail and it will be hugely sensitive to a few assumptions (market size & ramp ip on penetration / market share - the rest is just noise).
Would also want to check whether the device has a known reimbursement path or whether it’s a new procedure - that can affect timelines (and value) significantly
That’s right - devil is in the detail and it will be hugely sensitive to a few assumptions (market size & ramp ip on penetration / market share - the rest is just noise).
Would also want to check whether the device has a known reimbursement path or whether it’s a new procedure - that can affect timelines (and value) significantly
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