14 Forces of Business Valuation
Valu8er utilizes proprietary algorithm to provide precise suggested valuation multiples based on the concept of “relative valuation” and comparing subject companies to competitors and the industry based on the following 14 Forces of Business Valuation
1 Revenue Size (the larger, the more valuable)
2 Revenue Growth Rate (the larger, the better)
3 Industry Forecasted Revenue Growth Rate (the larger, the more valuable)
4 Average Revenues per Employee (the larger, the more valuable)
5 Customer Diversification / Subscription Model (the more spread-out, the more valuable)
6 Supplier Diversification (the more spread-out, the more valuable)
7 EBITDA Margin (ebitda/sales) (the larger, the more valuable)
8 Level of Reliance on Owner(s) (the less, the more valuable)
9 Capital Assets Expenditure Level (the smaller, the more valuable)
10 Level of Working Capital Requirements (the smaller, the more valuable)
11 Difficult of Industry Entrance (the more difficult, the more valuable)
12 Level of Technology / Automation (the greater, the more valuable)
13 Tangible Asset Backing (the greater, the more valuable)
14 Scalability (the easier to scale, the more valuable)
