Company Valuation - How do you value a company that is making losses, for example a startup valuation?



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How can you value a company that is making losses?

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For example, startups are always making loses but they are still valued by investors when they invest in the startup. In such situations, startups are valued as a multiple of the revenue. Typically in the internet space, loss making startups are valued between 15-30 times the revenue. So if revenue is Rs. 1 crore, then value of the company is 1 x 30 = Rs. 30 crores.

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