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

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One thought on “Valuation World Cup: Quarterfinal 1 – EV/Sales Cruises to Victory!

  1. Pingback: The Valuation World Cup Begins! | Capital: Ventured.

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