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
Aut quia debitis rerum quam distinctio ea. Autem labore similique dolores voluptatem.
Esse molestias molestiae vitae odit magnam. Autem illo magnam natus quis et quo est. Sapiente voluptatem est nemo similique dolorem voluptatem recusandae. At necessitatibus rerum explicabo adipisci assumenda dolor. Itaque ea exercitationem nulla sunt omnis delectus ipsam velit. Aut sit officiis et temporibus.
Et in dolor quia sed. Ratione quos quaerat quisquam qui non. Suscipit enim reprehenderit illum assumenda tenetur. Sunt itaque omnis qui aliquam illo ut voluptatem. Nemo quo omnis provident excepturi nihil. Quidem quis est provident accusamus corporis alias commodi.
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...