Above the Crowd

Archive for May 24th, 2011

All Revenue is Not Created Equal: The Keys to the 10X Revenue Club

May 24, 2011:

[Follow Me on Twitter] “ Don’t you know that you are a shooting star, And all the world will love you just as long, As long as you are.”  — Paul Rodgers, Shooting Star With the IPO market now blown wide-open, and the media completely infatuated with frothy trades in the bubbly late stage private market, it is common to see articles that reference both “ valuation ” and “ revenue ” and suggest that there is a correlation between the two. Calculating or qualifying potential valuation using the simplistic and crude tool of a revenue multiple (also known as the price/revenue or price/sales ratio) was quite ...

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