To maximize the value of your business and protect yourself from an undervalued exit or sale, it's critical to have accurate and fresh company information.

If the target company is not yet profitable, revenue multiples may be applied where appropriate in the public company comparables analysis. Applying revenue and revenue growth adjusted multiples can often provide a reasonably accurate valuation picture when EBITDA is negative or not material. EBITDA multiples may be applied to forward periods if the company is expected to reach EBITDA profitability in the near term. For the most accurate possible valuation, we recommend including as many years of projected financials as available to obtain a valuation of the target company reflecting its full potential at maturity.
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Related article: What happens if the company I am valuing is pre-revenue?
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See our Glossary for additional information related to the financial terminology in this article and throughout our Help Center.