Understand the revenue sources before you apply a multiple
Deconstruct the revenue by stream before you trust the top line. Because these businesses do not fit a standard category, the revenue often blends high-margin recurring work with low-margin project work. Get the P.L. broken out by segment and assess each piece on its own merits before blending them into a single price-to-earnings view.
b838c450-549e-472b-864e-f1db7d2bd2a0.png&w=3840&q=75)