Could be either one. The methodology you use for valuation reflects your priorities. Warren Buffet calculates valuations based on free cash flow[1].
For what it's worth, the company I work for currently just got sold off for $4.4bn USD by our parent company. Based on quarterly filings, that equated to about 2x annual revenue and 9-10x EBITDA for last year (not sure what the multiple was for net).
Comments
Could be either one. The methodology you use for valuation reflects your priorities. Warren Buffet calculates valuations based on free cash flow[1].
For what it's worth, the company I work for currently just got sold off for $4.4bn USD by our parent company. Based on quarterly filings, that equated to about 2x annual revenue and 9-10x EBITDA for last year (not sure what the multiple was for net).
[1] https://www.entrepreneur.com/article/66442