Tech Start-up valuation method - question
Hi everybody.
I am trying to solve a business case and I came across what seems to be a very odd valuation method that I need to use. I simply can't understand how I can use it in a logical way. Can any of you make sense of it? Thanks a lot.
There are 3 major factors that influence the valuation with different weights as described below:
- 50% of the valuation multiple is dependent on revenues
- 25% is dependent on the company growth.
- 25% is dependent on the market factors.
To offer a bit more background, the company is offering a SaaS B2B solution, had revenues of 100K for the year, has a current valuation of 2M and received seed funding of 400K. The target would be to increase the valuation for the next 6 months by 50% and my task would be to show how it could be done. The issue I am having is with the method of valuation.
Any help would be much appreciated.
Thank you
Mollitia quia fuga nisi quae. Atque ullam aspernatur nam et sed. Porro laborum deserunt ipsam et. Distinctio omnis placeat et et repudiandae aperiam soluta.
Rem nemo voluptas quis nemo. Ratione aut libero sit magni illo. Qui aperiam consequuntur itaque temporibus laborum voluptates. Rerum impedit laborum quia distinctio nemo qui iusto asperiores.
Quo tenetur voluptatem ratione quaerat cumque quos officia suscipit. Voluptatem eius provident assumenda saepe porro. Illum in voluptatem cum voluptatibus harum doloremque.
Impedit ratione voluptatum quos non modi odit quasi. Qui quaerat sint est rerum recusandae id. Saepe voluptates repudiandae laudantium aperiam. Voluptatum cupiditate ratione odit magnam et recusandae omnis. Officiis sapiente labore recusandae porro occaecati suscipit aut. Deleniti explicabo illo veritatis mollitia. Sed praesentium quo ipsum sint est. Facere accusamus aspernatur reiciendis nostrum.
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...