Typical Multiples in Growth Private Equity
Hi all,
Long time luker, first time poster here. I am currently trying to value some established (not VC stage) but high growth companies using EV/Sales multiples. I have found a list of EV/Sales multiples for different industry sectors, but these multiples were computed using large publicly traded companies and I think the EV numbers I'm getting when applying these to high growth companies are waaay too low.
This is an example of the multiples I have obtained from public company data. I thought perhaps multiplying the multiples below by 2 - 3x would make sense?
Sector EV/Sales Multiple
Chemical (Basic) 1.11 Chemical (Diversified) 1.04 Chemical (Specialty) 2.12 Coal & Related Energy 1.02 Computer Services 1.14 Computers/Peripherals 1.24 Construction Supplies 1.17 Diversified 0.99
Any information at all on typical sales multiples used in growth equity valuations would be amazing - this may just save my life!
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