Row 48142

Row ID: 48142 | Dataset Entry | Axioma AXP Content Repository

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This page contains data entry 48142 from the Axioma AXP content repository. The structured data below represents the complete record for this entry.

One thing to keep in mind:

Businesses are valued on revenue multiples of earnings. Tech firms typically have 10x multiples and traditional business 2-4x. You can think about this like you think about net present value generally: what is the value today of a cash flow extending years in the future?

If you look at project costs compared to enterprise value, a project with an upfront investment of 400k that gains 50k a year is positive book value for a tech firm (10x of 50k is 500k) and not so bad for a traditional firm (~400k vs ~200k).

THAT SAID, the earnings multiples are based on revenues, not costs. It makes a difference. So if it was gaining an additional 50k / year in new sales the above situation would make more sense than if it is just cost saving.

this may be confusing to you but I don't have time to write a better comment haha sorry

FieldValue
text One thing to keep in mind: Businesses are valued on revenue multiples of earnings. Tech firms typically have 10x multiples and traditional business 2-4x. You can think about this like you think about net present value generally: what is the value today of a cash flow extending years in the future? If you look at project costs compared to enterprise value, a project with an upfront investment of 400k that gains 50k a year is positive book value for a tech firm (10x of 50k is 500k) and not so b…
label r/machinelearning
dataType comment
communityName r/MachineLearning
datetime 2024-05-22
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Raw Record

{
  "text": "One thing to keep in mind: \n\nBusinesses are valued on revenue multiples of earnings. Tech firms typically have 10x multiples and traditional business 2-4x. You can think about this like you think about net present value generally: what is the value today of a cash flow extending years in the future?\n\nIf you look at project costs compared to enterprise value, a project with an upfront investment of 400k that gains 50k a year is positive book value for a tech firm (10x of 50k is 500k) and not so bad for a traditional firm (~400k vs ~200k). \n\nTHAT SAID, the earnings multiples are based on revenues, not costs. It makes a difference. So if it was gaining an additional 50k / year in new sales the above situation would make more sense than if it is just cost saving. \n\nthis may be confusing to you but I don't have time to write a better comment haha sorry",
  "label": "r/machinelearning",
  "dataType": "comment",
  "communityName": "r/MachineLearning",
  "datetime": "2024-05-22",
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