Question
IT service companies develop Web storefronts that are integrated with back-end implementation systems. Only a small number of companies offer such extensive e-business integration. The
IT service companies develop Web storefronts that are integrated with back-end implementation systems. Only a small number of companies offer such extensive e-business integration. The industry continues to grow because of customer demand. Unlike traditional valuation, companies in the IT services sector are valued based on revenue multiples. Following are two tables that summarize comparable valuation multiples and operating metrics as of November 22, 2005?a leading Wall Street investment bank, using its own estimates and company data, compiled these tables.
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