Here are two other approaches to the notion of low-multiple investing: price to cash flow and enterprise multiple.
So for conducting cross-border sales an e-tailor has to maintain website(s) in multiple languages, invest in country and/or language specific SEO and run multiple marketing campaigns which are also different for every country or language.
At the new $1.50 share price, BlackBox Capital's seed investment is now valued at $3.75 million, a 1.5x multiple on invested capital.
As it happens, that multiple on invested capital (MOIC) makes for a fairly decent heuristic for measuring company and investor performance.
Calculating the multiple on invested capital (MOIC) is as easy as dividing the amount of money received after the company winds up by the total amount of money invested.
People are juggling multiple checking, savings, investing and credit card accounts, and it gets more complicated when you add mortgages, tax and insurance concerns into the mix.
It seems to us that Netscape, Microsoft, Yahoo, and other companies with a stake in the future of the Internet might have multiple reasons for investing in our Encyclopedia.
If there's one thing I've learned from starting multiple companies and investing in dozens of entrepreneurs, it's that sooner or later, your personality affects the trajectory of your startup – whether you want it to or not!
Some objectives can serve multiple purposes -- investing in education will also help gender equality and health, for example -- but inevitably, tough choices will need to be made: Build roads or schools?
As shown, the mobile sector produced some exits with very good multiples on invested capital, which is good for investors and entrepreneurs alike.
In other words, startups that raise less money (such as those at seed and early-stage) tend to deliver better multiples on invested capital.
