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Take EBITDA (Earning before income tax, depreciation, and amortization) and multiply that number by between 5-18. You get a higher multiple through higher growt
by curt 16y ago
Take EBITDA (Earning before income tax, depreciation, and amortization) and multiply that number by between 5-18. You get a higher multiple through higher growth, long term consumers, sustainability (your consumers won't leave), competition, size, etc.
For what you said you likely are around 10, so if the company doesn't need someone to sustain growth it would be worth around 2M. If it's a talent acquisition or IP does change the calculation somewhat. Now a year from now I would raise that multiple to around 12-14 if you maintain your growth rate.