previous_year_revenue * ((growth_rate / 10) + 1) For example, a company with a 50% growth rate and $10MM in yearly revenue can be said to be worth about $

previous_year_revenue * ((growth_rate / 10) + 1) For example, a company with a 50% growth rate and $10MM in yearly revenue can be said to be worth about $10MM * ((50 / 10) + 1) = $60MM The above formula shouldn't be used to determine acquisition price. It mainly provides a sense of how much a company could be worth. Other factors to consider are intellectual property, cash balance, employee quality, etc.