How do you value a CPG company?

To estimate your terminal value, use industry statistics and your company’s historical data to predict your revenues and earnings in the year you project your brand will sell. Researching how much CPG companies typically sell for can help you land on the most accurate figure possible.

What is 10x valuation?

We understand from sources close to the company that 10x’s valuation with this round is in the range of $700 million. (The amount raised and valuation also roughly line up with the figures from Sky News, which reported earlier this month that 10x was raising new funding.)

How do you value a retail company based on revenue?

Practically all retail businesses will appraise for somewhere between 1.5 to 3 times discretionary earnings plus inventory at cost. Exactly where in this range that a specific business will fall depends on the size and type of the retail shop plus its revenue trends.

How do you calculate revenue multiple?

Multiple of revenue is equal to the selling price of a company divided by 12 months’ revenue of the company. The appropriate revenue multiple to apply to a subject company is obtained from comparable public companies or precedent transaction multiples.

What is a good revenue multiple?

The multiple used might be higher if the company or industry is poised for growth and expansion. Since these companies are expected to have a high growth phase with a high percentage of recurring revenue and good margins, they would be valued in the three to four times revenue range.

What multiplies when valuing a company?

Common Ratios Used in the Multiples Approach Common equity multiples include price-to-earnings (P/E) ratio, price-earnings to growth (PEG) ratio, price-to-book ratio (P/B), and price-to-sales (P/S) ratio.

What is revenue multiple valuation?

Multiple of revenue, or revenue multiple, is a ratio that is used to measure a company’s value based on its net sales or gross revenue. It is used in the valuation of any given business.

What is a retail multiplier?

The wholesale multiplier and the retail multiplier are reciprocals of each other. For example, if multiply your wholesale price by 1.3 (130\%) to get your retail price, then you multiply your retail price by 1 / 1.3 (= . 77) to get your wholesale price.

What are company valuations based on?

A business valuation might include an analysis of the company’s management, its capital structure, its future earnings prospects or the market value of its assets. The tools used for valuation can vary among evaluators, businesses, and industries.

What is a revenue multiplier?

A revenue multiple measures the value of the equity or a business relative to the revenues that it generates. As with other multiples, other things remaining equal, firms that trade at low multiples of revenues are viewed as cheap relative to firms that trade at high multiples of revenues.

What is a stock multiplier?

The earnings multiplier frames a company’s current stock price in terms of the company’s earnings per share (EPS) of stock. The earnings multiplier can help investors determine how expensive the current price of a stock is relative to the company’s earnings per share of that stock.

What is a valuation multiplier in business valuation?

Small Business Valuation: What is a Valuation Multiplier? In business valuation for the sale of large and small business, it goes without saying that a business with a multiplier of four is going to be twice as valuable as that same business with a multiplier of two.

How are the valuation multiples categorised?

Our valuation multiples are categorised by sector and standard industry classification (“SIC”) codes. To download eVal’s historic Valuation Multiples by Industry reports, please click on the relevant download link below. Our Valuation Multiples by Industry sector reports are based on industry valuation multiples as at the specified month end date.

What are the valuation multiples by industry sector reports based on?

Our Valuation Multiples by Industry sector reports are based on industry valuation multiples as at the specified month end date. The Valuation Multiples by Industry reports provide data on trailing industry valuation multiples categorised by SIC sector and industry.

How do I download and retrieve company valuation multiples?

Users can download and retrieve underlying industry valuation multiples by SIC Code (s), or by selecting individual peer companies to create a user-defined peer group. To download financial data and comparable company valuation multiples at selected dates, click here .