[Free] Multiples Template for Founders & VCs

Understanding valuation multiples is essential for both VCs and founders.

Some notes on my template:

💹 Public Comps
Public comps tells you (1) What valuation this industry vertical can go out at at maturity (2) Trends on if investors are willing to pay more or less for this type of asset (see: fintech in 2020-2024)

EV / Revenue: Typically best for most startups as P&L is still young (ie no positive earnings)
EV / EBITDA: EV/EBITDA gives a clearer picture of how the market values the company's core business operations
NTM Margin: Rough estimates for unit economics (could explain why certain companies trade high vs low multiples)

The data can typically be found from a CapIQ or Bloomberg.

Graph this data to visualize quickly where your company sits compared to the market.

🏛 Transaction Comps
Transaction comps are important to establish a benchmark for valuing the startup - ie what the private market is currently paying for this asset.

Best places to get this data is on Pitchbook or Crunchbase.