I used to work on Wall Street and this is spot on how we guessed at valuations for cash flow negative companies when we were trying to show bottom-up valuation

I used to work on Wall Street and this is spot on how we guessed at valuations for cash flow negative companies when we were trying to show bottom-up valuation analyses. Otherwise, we might compare the company to a list of peers and value it on some Enterprise Value / Sales multiple (especially in high growth software).