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Ray Rike's avatar

Growth will increase in relative importance to operating profitability as measured by a two-factor analysis of growth rate vs FCF Margin against Enterprise Value to Revenue multiples...

....though it is important to note that having positive Free Cash Flow is critical, and with a combination of a 10% - 20% FCF Margin with 20%+ growth rates will yield the highest EV:Rev multiples

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OnlyCFO's avatar

Yep - some amount of positive FCF margin is still really important

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