2 ms·

I thought ~20x or so was a good baseline earnings multiple. I have no idea what makes sense as a revenue multiple but I bet it would be a lot lower than that.

by aqme28 1y ago

I thought ~20x or so was a good baseline earnings multiple. I have no idea what makes sense as a revenue multiple but I bet it would be a lot lower than that. Edit: After looking it up, normal P/Sales ratios are on the order of about 1. They vary from like .2 to 8 depending on industry.

tinyhouse 1y ago
You should check a few software companies that are publicly traded. Figma for example is at P/S ~38 multiple currently. Google at 6.8. If Anthropic would've done an IPO today they would probably be at ~100 given where Figma is.
utyop22 1y ago
You're comparing the value of equity to firm earnings? Lol. I don't really bother calling out most financial stuff on here since I can't be bothered but come on. Its not internally consistent, at all.
- aqme28 1y ago
  No, I'm calling out the person who is comparing those things.