Valuation World Cup: Quarterfinal 2 – Financial Powerhouse Upset!

*Editor’s Note: Keep up to date on all things Valuation World Cup here!

Knockout round play continues!

Matchup:

Group A Winner (Adjusting the Average) vs. Group B Runner Up (EV/EBITDA)

Highlights:

While superpowers march headfirst into one another in the World Cup, here at C:V in the Valuation World Cup we love an underdog. Adjusting the Average pulled out to an early 1-0 lead. After all, they were our group stage Angel winner and are situated nicely for pre-revenue, let alone pre-earnings, companies. Late in the second half, early favorite EV/EBITDA finally clicked and looked to have that late-round prowess, but never could find an equalizer. That push left little doubt that, had this game gone into extra time (or gone public), they would have moved forward… but too little, too late for this competition. This matchup draws comparison to Germany’s parked bus after a 13’ goal against the French. Plenty of Benzem-ian efforts for EV/EBITDA, but like him, they will be watching the semis from their couches.

Outcome:

EV/EBITDA 0-1 Adjusting the Average

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Valuation World Cup: Quarterfinal 1 – EV/Sales Cruises to Victory!

*Editor’s Note: Keep up to date on all things Valuation World Cup here!

win or go home

And so begins the knockout stage!

Matchup:

Group B Winner (EV/Sales) vs. Group A Runner Up (Recent Transactions)

Highlights:

Unlike the World Cup’s Quarterfinals, each of which were decided by a goal or less, the Valuation World Cup features a runaway game. EV/Sales and Recent Transactions looked evenly matched through the first 30’, as both are useful for very early stage companies. Then EV/Sales started piling it on, as both rely on comparables, but EV/Sales calculates value based on that company’s expected performance, not based on others’ past successes. By tying the valuation to revenue goals, you can track the increase in value with the company growth. A bit like Sneijder and co. providing a late push against El Tri, EV/Sales proved to be the fitter squad throughout.

Outcome:

EV/Sales 3-0 Recent Transactions

Monday Evening Memo

nyc_fireworks

Happy Monday!  Due to the Fourth of July weekend we are getting the C:V. MMM out a bit later than normal. Check below to see what happened last week and what you can expect this upcoming week!

Recap of Last Week: Last week we closed out the Group Stages of the Valuation World Cup!  Group C and Group D were featured.

What Lies Ahead: We have a full week of Valuation World Cup ahead!  Expect to see us finish out the tournament to coincide with the Finals this weekend!  We will also have some news upcoming about the future of the site and some planned downtime (re: vacation). Stay tuned!