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The average revenue multiple for all public companies is 1.62. It varies by industry (see [1]), but eventually most startups will settle into ordinary revenue m
by paulsutter 10y ago
The average revenue multiple for all public companies is 1.62. It varies by industry (see [1]), but eventually most startups will settle into ordinary revenue multiples for their industry, whether they like it or not.
[1] http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/psdata.html http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/...
- jcrben 10y agoThey'll settle into ordinary earnings multiples. Sofware companies typically have much higher revenue multiples because they have much higher gross margins. In this case, the article is talking more about brick & mortar startups.