Forecasting ecommerce multiples at exit

The Equity Kicker

1-800 Flowers, meanwhile is valued at 0.6x revenues because growth is much lower – forecast at 5-7% next year, and their EBITDA margin is 8%. At the end of the day a business is worth the net present value of future cash flows, EBITDA is a good proxy for cashflows, and future EBITDA is a function of revenues today, revenue growth and EBITDA margin. Mahesh Vellanki from Redpoint put up an interesting post yesterday about ecommerce valuations.

10 Things I Hated About Your Business Pitch

Up and Running

Read Resonate , or Presentation Zen , or just at least the blog post Really Bad Powerpoint. Your co-presenters were bored. When more than one person presents, the others have to act interested. You focused on internal rates of return and net present value. I’m glad they taught you internal rates of return and net present value in business school. Or the enterprise sales forecast based on sales reps, pitches closes, and pipeline.

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Model Building from the Ground Up

ConversionXL

If you’re looking for how much money to invest in the mining location, net profit after one year may be a criterion. If net profit is a criterion, do you have equipment costs? Is your KPI net present value of the project?

.Net 74

10 Things I hated About Your Business Pitch

Up and Running

I’m talking about the 10-20 minute slide presentations and accompanying questions and answers. . Read Resonate (better yet, get the new iBook version , which is sensational), or Presentation Zen , or just at least the blog post Really Bad Powerpoint. Internal rates of return and net present value. ” I hate hearing about a $43 billion market, and even more so when you present a sales forecast validated by getting some percentage of that market.

IRR 131

Asset Management Is A Bizarre Industry Ripe For Disruption

David Teten

Disruptable Pattern #1: The asset management industry collectively adds minimal value to its clients above the option of investing in index funds. Of course, asset management firms also sell peace of mind, tax minimization, and other services besides just increasing the value of your assets.). Another exception are investors who proactively add value to their portfolio companies (as ffVC strives to do), which some of my research indicates should help to increase returns.