New Topic
Post Reply
Follow Topic
For Seed/Startups. I found this post/pre money valuation calculation online:
Post-Money = Terminal value in the (#)nth year / Anticipated ROI in the (#)nth year
Pre-Money = Post-Money - Money (Capital invested)
"To determine terminal value you must use a multiple of annual revenue"
Question is, how do you determine the "multiple" for an Apparel (Fashion design) company? 
I don't quite understand. Any help would be appreciated.
smdusa,
One of the traditional methods of establishing the worth (valuation) of a company is to multiply the annual revenue (or profits) by some number. Usually this number is determined by the results of other companies in the same (or similar) industries.
When using this method in a forward look at the future value in order to make present day decisions - most people "discount" the value of the dollar in the future.
Finding a multiple for your industry can take a bit of research.
if you want to discuss your specific situation, feel free to drop me a PM or contact me directly.
Post Reply
