Valuation of a EBITDA-ve company
Hi, I’m trying to value a company that currently has negative EBITDA but, based on projections, is expected to become profitable by 2029 or 2030.
Since companies in this industry are typically valued using EBITDA multiples, I was thinking of using revenue multiples for the near term and also looking at forward EBITDA multiples. For example, could I take the current trading EBITDA multiple of comparable companies and apply it to the target’s projected EBITDA for 2029 or 2030?
Would that be the correct approach?
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