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Your startup is forecasting $7mm in sales, $4mm in gross profit, and ($1mm) net loss. You have analyzed public companies in your industry and learned

  1. Your startup is forecasting $7mm in sales, $4mm in gross profit, and ($1mm) net loss. You have analyzed public companies in your industry and learned that the average ratios are as follows:

Price/Sales: 2.0

Price/EBIT: 7.0

Price/Earnings: 14.0

Price/Assets: 0.5

If you have only this data on hand, what is your best estimate of your companys comparables valuation?

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