Where Are Digital Media Valuations Now?
Investors are naturally drawn to businesses that exhibit not only current revenue strength but also the potential for sustained growth, making this factor a compelling driver of valuation.
Annual Revenue Growth
5x
4x
3x
2x
1x
0x
< 0%
1%-10%
> 10%
Revenue Growth (3-Year CAGR)
Lastly, a higher CAGR over a three-year period signifies consistent, sustained growth, providing investors with confidence in the company's ability to weather market fluctuations.
3-Year Revenue CAGR
5x
4x
3x
2x
1x
0x
< 0%
1%-10%
> 10%
Revenue Growth (3-Year CAGR)
In essence, these three factors collectively fortify the operational foundation of digital media businesses, allowing them to carve a path toward realizing a higher and more favorable valuation.
FE International
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2024 Digital Media M&A Report
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