🧠 Why Multiples Aren’t Magic

šŸ“ˆ Multiples are just a shortcut. Not a value.

Valuing a business based on ā€œa 3x multipleā€ is like pricing a house based only on square footage.

Real valuation = real analysis:

  • Adjusted free cash flow
  • Industry benchmarks
  • Company-specific risks
  • Working capital needs

Multiples don’t close loans. Sound valuations do.