EV/EBIT multiple for digital e-commerce businesses

by a searcher from The Interdisciplinary Center Herzliya

4 years ago

Dear all

Any ideas of EV/EBIT multiple to evaluate digital products e-commerce business like this one... 

We are a self-funded search, currently in the process of signing the LOI and willing to get some validation to our proposal and mainly to the EV/EBIT multiple. The Company details are below:
Industry: Online test & assessment preparation (e-commerce)
Product: An online kit (like GMAT)
Financials 2020: 
Revenue: USD10m (growing 10-15% for the last years). 
EBIT: USD3m (growing 10-15% for the last years)

Business dynamics:
B2C
Non-recurring revenues
Cash conversion: >90%
Competitive landscape
Low entry barriers
Any ideas for relevant sources to evaluate digital e-commerce businesses?

If interested, please reach out directly to --@----.com 
Best and happy weekend,
Matan

6 likes
186 views
16 comments

searcher from Stevens Institute of Technology

3-4x

7 months ago | like reply | 0 likes

searcher from Duke University - The Fuqua School of Business

i would also consider how differentiated the brand is, Own manufacturing vs, outsourced. Superior product ingredients vs. commodity product

2 years ago | like reply | 0 likes

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