3-Year Valuation
Last updated
Last updated
Based on our first year financial outlook, we can propose a 3-year valuation on Produce AI.
Cost of Goods Sold (COGS): 40% of revenue.
Operating Expenses: 10% of revenue.
Revenue: $4,410,600
COGS (40%): $1,764,240
Operating Expenses (10%): $441,060
Net Profit: $2,205,300
Valuation Range:
Low End (5x Multiplier): $2,205,300 * 5 = $11,026,500
High End (10x Multiplier): $2,205,300 * 10 = $22,053,000
Revenue: $5,513,250 (25% increase)
COGS (40%): $2,205,300
Operating Expenses (10%): $551,325
Net Profit: $2,756,625
Valuation Range:
Low End (5x Multiplier): $2,756,625 * 5 = $13,783,125
High End (10x Multiplier): $2,756,625 * 10 = $27,566,250
Revenue: $6,891,562.50 (25% increase)
COGS (40%): $2,756,625
Operating Expenses (10%): $689,156.25
Net Profit: $3,445,781.25
Valuation Range:
Low End (5x Multiplier): $3,445,781.25 * 5 = $17,228,906.25
High End (10x Multiplier): $3,445,781.25 * 10 = $34,457,812.50
The business shows a consistent annual growth rate of 25% in both revenue and net profit over three years.
The cost structure is stable with COGS at 40% and operating expenses at 10% of the revenue, indicating effective cost management.
By the end of Year 3, the business valuation ranges from approximately $17.23 million to $34.46 million, with a 5x-10x applied multiplier. This range reflects the business's profitability, growth trajectory, and potential future earnings
