>> Revenue multiples have, at best, only tenuous relationship to cashflow. If you sell $10 notes for $1, in theory you can have infinite revenue. Sure, but rev

>> Revenue multiples have, at best, only tenuous relationship to cashflow. If you sell $10 notes for $1, in theory you can have infinite revenue. Sure, but revenue multiples are specific to a business or product type. A consulting company's revenue multiple might be 2x or 3x. A cloud-based SaaS with no hands-on setup might be 10x. A HelloFresh/BlueApron business might be, say, 7x. For some types of businesses, I wouldn't even pay 1x. If an investor is applying the wrong multiple to a business, they wont be around for long.