Revenue Multiples
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The Valuation Reset
20VC with Harry Stebbings· 2026-02-06 18:19
When companies shift from being valued on revenue multiples with no deduction for loss, totally ignoring option dilution all the way to being valued on free cash flow and you know where they're basically deducting the SPC, it's just such a huge change. It's such a valuation reset that if you go into that valuation reset and the market suddenly stops thinking of as a growth company and starts thinking of let me compare you to a bank or a utility or an industrial company. It takes a lot of years of flat stock ...