I was wondering if someone could discuss tech valuation multiples (specifically for internet, software and semiconductor companies). My understanding is that internet companies that are pre EBITDA are going to use funky valuation methods like number of unique users, software companies typically have higher FCF (not sure why) so they're valued as a multiple of FCF but you wouldn't want to use revenue multiples because they deal with a lot more recurring revenue and as a result recognize revenue atdifferent times and lastly semiconductor companies are typically more stable so you'd use P/E, EBITDA multiples or even P/BV. Does any of this make sense?
Trending Content - Off Topic Forum
Career Resources
Bump
bump
In eos ullam adipisci. Doloribus ea deserunt natus neque a delectus. Illum veritatis earum omnis libero quam laborum et cum.
Consequatur unde consequatur maiores accusamus expedita. Quam magnam tempore enim aliquam debitis. Ullam itaque voluptate ad deleniti incidunt vel vel. Non doloremque nihil error ut ut eum. Quidem doloremque recusandae veritatis explicabo.
Adipisci adipisci fugit dolorum laborum odio. Harum ab repellendus eum autem. Et sunt eos asperiores. Fugit voluptas aut ut est.
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...