Growth Adjusted Enterprise Value to Revenue Multiple (ERG) - podcast episode cover

Growth Adjusted Enterprise Value to Revenue Multiple (ERG)

Jan 10, 202423 minEp. 24
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Episode description

How the Enterprise Value of a SaaS company impacted by growth rate is the topic of today's conversation with Dave "CAC" Kellogg and Ray "Growth" Rike - the result is a new metric named "ERG" - the Enterprise Value to Revenue to Growth Rate Multiple.

During this episode, Dave and Ray highlight several leading public, B2B Cloud companies and how their Enterprise Value to Revenue multiples are impacted when the growth rate is factored in.

With a public Cloud/SaaS company median growth rate of 21%, the median Enterprise Value to Revenue multiple of 6.1x and a median ERG of .31 - what does that mean when the ERG is calculated for public Cloud companies such as Workday, Twilio, Domo, ZoomInfo and Hubspot?

If you are interested in how growth rate impacts enterprise value in a B2B Cloud company - this episode is a great listen!


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