Why some companies get crazy high valuations (and others don't)
Original: All Revenue is Not Created Equal
Summary
Bill Gurley explains why recurring revenue streams are valued higher by investors.
Who This Is For
Founders
Business Analysts
Marketing Managers
Key Takeaways
- Learn why price/revenue multiples vary wildly across companies (100X difference between lowest and highest)
- Understand the concept of 'revenue quality' and how it drives investor valuations
- Discover why SaaS and subscription models command premium multiples over transactional businesses
- Get a framework for evaluating competitive advantages that justify high valuations
- See real data showing only 10% of companies achieve 7X+ revenue multiples
Tools & Technologies
DCF (Discounted Cash Flow) models Price/revenue ratio analysis Price/earnings ratio calculations Enterprise value to EBITDA metrics
Topics Covered
revenue saas investing unit-economics
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