How do you value recurring contracted revenue and project-based revenue within the same company?
Example: technology-enabled, solutions & managed services provider.
Well-run business, no one customer represents more than 25% of revenue, unaffected earnings or are negative impacts expected thus far given the pandemic environment, closed expected Q1-2020 sales, and forecast for the balance of the year will show a conservative 13% revenue increase.
2019 Revenue = $21M
2019 dollars Adj. EBIDTA = $2.2M
$6.3M is contracted recurring support revenue (contracts go from 2-5 years), managed services.
$14.7M is services/project-based revenue. 65% of the customer have been renewing project-based work for the past four years.
I realize there’s more detail required to come up with actual EV. Such as debt, a balance sheet that sort of thing, but what’s your thumb rule, what necessary calculations do you apply to the scenario?
How do you value Recurring contracted revenue and project-based revenue wit

by a searcher from Rutgers, The State University of New Jersey - Camden
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