What is the Gross Profit x Competitor’s Multiple Startup Valuation Method?
Esteban Sastre
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Esteban Sastre
Software Engineer | Software Architect | Hands-on tech and product solving
The?Gross Profit x Competitor's Multiple?method is based on a simple formula:
Gross Profit (i.e. Last 12 months) x Competitor's Multiple
It is thus evident that this method is to be applied to startups that have already conquered the no-revenue threshold and are growing at a healthy pace.