How Investors Value Private Company Stock
Valuation Factors
 
(Slide 27  of 50)

Factors that influence private company valuations include:
  • The valuations placed on similar companies in the public market.
  • The persuasiveness of the company’s projections for future revenue, profitability and cash flow management.
  • The depth, sophistication and experience of company management.
  • The size of the company’s markets.The quality and extent of the company’s competitive advantages over its competition.
  • Company revenues, profitability and record for meeting its plans and managing its cash.The quality of the company’s business plan and internal reporting systems.

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