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Exactly! Every time you double your growth rate it also approximately doubles the Price / Revenue ratio. 20% growth will yield a 2-3x ratio. 40% growth 4-6x, a
by zaroth 8y ago
Exactly! Every time you double your growth rate it also approximately doubles the Price / Revenue ratio.
20% growth will yield a 2-3x ratio. 40% growth 4-6x, and by 80% growth you’re looking at a valuation of 8-12x ARR.