Fundamentals & Valuation
multiple-calculator
Multiple Calculator computes valuation multiples for comparable company and transaction analysis, supporting both public trading and private deal comparables. It calculates revenue-based measures (EV/Revenue, EV/ARR, ARR and NTM multiples, recurring vs.
Overview
Multiple Calculator computes valuation multiples for comparable company and transaction analysis, supporting both public trading and private deal comparables.
Multiple Calculator computes valuation multiples for comparable company and transaction analysis, supporting both public trading and private deal comparables. It calculates revenue-based measures (EV/Revenue, EV/ARR, ARR and NTM multiples, recurring vs. non-recurring revenue adjustments) and profitability metrics (EV/EBITDA, EV/EBIT, P/E), handling negative earnings and margin normalization. Sector adjustment features apply industry-specific premiums and discounts, growth and margin differentials, and market-positioning factors. Analytical outputs include median and mean multiples, outlier identification with root-cause explanations, trend tracking, and weighted multiple ranges with methodology notes. Use cases include M&A valuation, investor due diligence, fundraising and pricing guidance, IPO preparation, and benchmarking. Core advantages are consistent, transparent adjustments; rapid scenario testing; combined transaction and trading views; and clear deliverables: adjusted multiples, valuation ranges, explanatory notes, and time-series trends.
Skill.md
How this skill works
Multiple Calculator computes valuation multiples for comparable company and transaction analysis, supporting both public trading and private deal comparables. It calculates revenue-based measures (EV/Revenue, EV/ARR, ARR and NTM multiples, recurring vs.
Multiple Calculator
Overview
The Multiple Calculator skill calculates valuation multiples for comparable analysis and valuation work. It computes standard multiples with appropriate sector adjustments and supports both private transaction and public company comparables.
Capabilities
Revenue Multiples
- Calculate EV/Revenue multiples
- Apply growth rate adjustments
- Compute ARR and NTM multiples
- Handle recurring vs. non-recurring revenue
Profitability Multiples
- Calculate EV/EBITDA multiples
- Compute EV/EBIT and P/E ratios
- Handle negative earnings appropriately
- Apply margin adjustments
Sector Adjustments
- Apply sector-specific premiums/discounts
- Adjust for growth rate differences
- Factor in margin profile differences
- Consider market positioning
Multiple Analysis
- Calculate median and mean multiples
- Identify outliers and reasons
- Track multiple trends over time
- Build multiple ranges for valuation
Usage
Calculate Transaction Multiples
Input: Transaction data, financial metrics
Process: Calculate multiples, apply adjustments
Output: Multiple calculations, adjustment notes
Calculate Trading Multiples
Input: Public company data, metrics
Process: Compute trading multiples
Output: Public company multiple analysis
Apply Sector Adjustments
Input: Raw multiples, sector characteristics
Process: Apply appropriate adjustments
Output: Adjusted multiples, methodology notes
Build Multiple Range
Input: Comparable set, weighting criteria
Process: Aggregate and weight multiples
Output: Valuation multiple range, application guidance
Common Multiples
| Multiple | Use Case | Typical Range (SaaS) |
|---|---|---|
| EV/Revenue | Growth companies | 3x - 15x+ |
| EV/ARR | Subscription businesses | 5x - 20x+ |
| EV/EBITDA | Profitable companies | 10x - 25x |
| P/E | Public companies | 15x - 50x |
| EV/Gross Profit | Marketplace businesses | 2x - 8x |
Integration Points
- Comparable Analysis Process: Core multiple calculations
- DCF Analysis: Terminal value multiples
- Comparable Transaction Finder: Calculate found comparables
- Valuation Specialist (Agent): Support valuation work
Adjustment Factors
| Factor | Impact on Multiple |
|---|---|
| Growth Rate | Higher growth = higher multiple |
| Margin Profile | Higher margins = higher multiple |
| Retention (NRR) | Higher retention = higher multiple |
| TAM | Larger market = higher multiple |
| Competition | Less competition = higher multiple |
| Switching Costs | Higher costs = higher multiple |
Best Practices
- Use NTM (next twelve months) for forward multiples
- Adjust for one-time items and normalization
- Consider growth-adjusted multiples (EV/Revenue/Growth)
- Document all adjustments clearly
- Use multiple types appropriate to business stage
Best used for
When to use it
Multiple Calculator computes valuation multiples for comparable company and transaction analysis, supporting both public trading and private deal comparables. It calculates revenue-based measures (EV/Revenue, EV/ARR, ARR and NTM multiples, recurring vs.
01 · PRE-MEETING
Prepare a decision brief
Turn scattered evidence into a structured case before an investment committee meeting.
02 · TEAM WORKFLOW
Standardize handoffs
Create consistent research outputs across analysts, portfolio managers, and agents.
03 · LIVE UPDATE
Refresh the thesis
Update scenarios after a new catalyst, KPI release, or earnings result.
Community notes
Built to improve with use.
Feedback will appear here as this skill is used and reviewed.
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