The Valuation World Cup Begins!


It is what you all have been waiting for, the Valuation World Cup is here!  You didn’t think C:V. would miss a chance to mimic a world-class tournament with our own blend of VC/Startup/Finance nerdiness did you?? (For the uninitiated, see our Term Sheet Madness/March Madness competition here)

The Plan:

Much like the World Cup we have 16 “teams” of valuation metrics divided into four Groups (A-D). We will be conducting group play over the next two weeks and then the top two teams will advance from each group for the knockout stages where a winner will be crowned!

The Criteria:

With each “team” we will be providing the following:

  • Explanation and Use Case
  • Pros and Cons
  • Example

We hope these will provide a solid foundation for understanding the concepts. We will also be providing commentary on “match highlights” and other cool tidbits along the way.

The Field:

Group A (Angel)

  1. Adjusting the Average
  2. Build Up
  3. Cost-to-duplicate (Build or Buy)
  4. Recent Transactions

See the Group A winners here!

Group B (Business)

  1. Enterprise Value/Sales
  2. Enterprise Value/EBITDA
  3. Enterprise Value/Sales Expense
  4. Discounted Cash Flow

See the Group B winners here!

Group C (Customers)

  1. Churn
  2. Enterprise Value/Lifetime Customer Value
  3. Enterprise Value/Monthly Active Users
  4. Market Share/Market Size

See the Group C winners here!

Group D (Miscellaneous)

  1. Ownership %
  2. Acquisition Value (Attach Rate)
  3. Enterprise Value/Patent
  4. Exit Multiple

See the Group D winners here!

Knockout Stages and Playoffs:

Quarterfinal 1: EV/Sales vs Recent Transactions

Quarterfinal 2: Adjusting the Average vs. EV/EBITDA

Quarterfinal 3: EV/LCV vs. Ownership %

Quarterfinal 4: EV/MAU vs. Acquisition Value (Attach Rate)

Semifinal 1: EV/LCV vs. EV/Sales

Semifinal 2: Adjusting the Average vs. Acquisition Value (Attach Rate)

C:V. VWC Final: EV/Sales vs. Acquisition Value (Attach Rate)

Get Social!

Feel free to follow along and/or tweet along with #CVWC