The Myth:
You can apply the “industry standard” multiple and call it a day.

The Reality:
Multiples vary wildly based on factors like size, margins, growth, risk, customer concentration, and management strength. There’s no one-size-fits-all multiple.

Why It Matters:
Using a wrong or generic multiple can seriously misprice the business — risking bad investments or flawed underwriting.

Practical Tip:
Use multiples only after assessing the company’s specific risk profile and normalizing cash flows.