Build a Cleaner Comps Read
Create a comparable-company valuation read using peer selection, metric selection, and range interpretation.
A workflow SaaS company with 22% growth and negative EBITDA wants to use an 8x revenue multiple from a broad SaaS peer list. Comps require peer fit, metric fit, and range discipline. Cherry-picking high-growth public peers creates a persuasive number that does not reflect the target's actual risk and growth profile. Step 1 Screen peers by business model, customer type, growth, gross margin, and scale. Remove companies whose revenue quality or risk profile is not comparable. Step 2 Choose EV/Revenue because the target is EBITDA-negative and reinvesting for growth. EV/EBITDA would be less meaningful when EBITDA is negative or distorted.…
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