With a more mature company, the valuation method is fairly straightforward. The ratio depends on your industry. Find a few equivalent companies and average thei

With a more mature company, the valuation method is fairly straightforward. The ratio depends on your industry. Find a few equivalent companies and average their PE ratios. Then subtract somewhere between 20-40%, depending on how new/mature your product and customers are. Multiply it by your current earnings (on a run-rate basis). That's the fair price. If you aren't profitable yet, you can do the same thing with the Price/Sales ratio, although that's more subjective and less accurate. It sounds like you may be new enough that all of these methods are out the window, and your valuation is based purely on your hotness and growth potential. In that case, I don't really know what you're worth. The only way to establish a fair value is to get a bidding war going. Actually, if you are truly on an exponential growth vector then 3-4x earnings sounds low. Why would you even consider it? In a year, you would have earned more than you would have made by selling the company. Is there any reason to think your earnings have leveled off? Also, is this a cash or stock deal? Is the payout no-strings-attached or is there an earn-out requirement with target revenues?