I fully agree with you on the 2-3x multiplier, but lzw never claimed an evaluation based on 50 x Revenue. He stated that operating profit would be used--which i

I fully agree with you on the 2-3x multiplier, but lzw never claimed an evaluation based on 50 x Revenue. He stated that operating profit would be used--which is exactly what EBITDA essentially is. That being said, you probably could still flip a web company for $1M with the 50x multiplier (given $20k in revenue). If you're serving an SaaS to 167 customers (paying $10/mo), your EBIT to Sales ratio --> 1.00 with negligible variable costs. God bless the interwebs.