Simply determine the company value by multiplying the revenue by 3? <\/p>\n\n
For a few companies in certain industries, the rule of thumb of 3 x revenue = company value may make sense, but for most, it does not. It disregards many things and oversimplifies the reality of company valuation. <\/p>\n\n
In principle, however, the multiplier method is a modern, sensible method based on industry comparisons. You can find a suitable multiplier for your industry and company size in the Nimbo market data<\/a>. <\/p>\n\n The x-times-revenue model is a very easy-to-use method for company valuation. It is based on the assumption that the value of a company corresponds to a multiple of its annual revenue. <\/p>\n\nApplication of the X-Times-Revenue Model <\/h2>\n\n