Revenue Multiples Method
Market-based valuation using revenue or sales multiples. Useful when businesses have minimal or inconsistent profitability but strong revenue generation.
Explore Revenue MethodWhen Revenue Multiples Are Used
Early Stage/High Growth
Companies prioritizing growth over profitability, particularly in technology and emerging industries.
Consistent Revenue
Businesses with stable revenue streams but variable or minimal profitability due to investment or market conditions.
Industry Standards
Industries where revenue multiples are commonly used benchmarks for valuation and comparison.
Industry Multiple Examples
SaaS/Technology
3-12x
Annual Recurring Revenue
Professional Services
0.5-2.0x
Annual Revenue
Retail/E-commerce
0.3-1.5x
Annual Revenue
Ready to Move from Learning to Action?
Put your knowledge to work with professional business valuation services tailored to your specific needs.