Examples of Revenue Multiple in a sentence
In the absence of a recent capital raise or arm’s length transaction, management considers all available information, including adjustments which considers an Enterprise Value to Revenue Multiple and/or benchmarking of instruments to market movements indicated by relevant indices.
The multiple may be discounted when compared to recent market transactions to reflect the relative size, growth and market segment of the comparable companies; • when valuing on a Revenue Multiple basis, the maintainable revenue of a company is multiplied by an appropriate multiple.
The key assumptions for the Earnings and Revenue Multiple approach are that the selection of comparable companies (chosen on the basis of their business characteristics) and using either historic or forecast revenues provide a reasonable basis for identifying the enterprise value of an investment in determining its fair value.
At 31 December 2019, the Group applied a Market Approach – Revenue Multiple method for the valuation of Fabergé, a retailer of premium personal luxury goods (“PLGs”), which supported the carrying value of the CGU despite the reduction of sales revenue from USD13.4 million in 2018 to USD10.5 million in 2019 and considering the typical method of valuing luxury goods businesses.
The principal methodologies applied are market- based approaches and are follows:- • Earnings Multiple; • Revenue Multiple; • Price of Recent Investment; and • Net Assets.