Understanding Acquisition Prices and Revenue Multiples

Acquisition Price: $44 billion

Revenue (Dec-21): $5.08 billion

Revenue Multiple: 8.7x

Revenue (Dec-22 Forecast): $5.87 billion

Forward Revenue Multiple: 7.5x

Gross Profit Margin: 65%

EBITDA (Dec-21): $818 million

Sales Growth (2020-21): 37%

EBITDA Margin: 16%

‘Rule of 40’ Therefore = 53%