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multiple-calculator

Business
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Calculates valuation multiples (EV/Revenue, EV/EBITDA, P/E) with sector adjustments

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Source SKILL.md: https://github.com/a5c-ai/babysitter/blob/HEAD/library/specializations/domains/business/venture-capital/skills/multiple-calculator/SKILL.md

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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

MultipleUse CaseTypical Range (SaaS)
EV/RevenueGrowth companies3x - 15x+
EV/ARRSubscription businesses5x - 20x+
EV/EBITDAProfitable companies10x - 25x
P/EPublic companies15x - 50x
EV/Gross ProfitMarketplace businesses2x - 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

FactorImpact on Multiple
Growth RateHigher growth = higher multiple
Margin ProfileHigher margins = higher multiple
Retention (NRR)Higher retention = higher multiple
TAMLarger market = higher multiple
CompetitionLess competition = higher multiple
Switching CostsHigher costs = higher multiple

Best Practices

  1. Use NTM (next twelve months) for forward multiples
  2. Adjust for one-time items and normalization
  3. Consider growth-adjusted multiples (EV/Revenue/Growth)
  4. Document all adjustments clearly
  5. Use multiple types appropriate to business stage