Question on valuation of a video compression company

I am working on valuing a private video-compression technology company, and wanted to know if the companies in this area are valued based on their revenues or more based on EBITDA? In other words would a buyer place more value on the revenues or on the ebitda?
Most of the smaller similar sized comps have negative earnings.

Thanks for any insight that the experienced folks on WSO can provide.

2 Comments
 

Sounds like a venture or early stage company. Correct?

Banking > VC > Tech PE; PM me if you would like any advice I'm happy to help
 

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