Multiples and Multitude

Multiples is a valuation methodology that compares public and private companies in terms of a ratio of value to an operations figure such as revenue or net income. For example, if several publicly traded computer hardware companies are valued at approximately 2 times revenues, then it is reasonable to assume that a startup computer hardware company that is growing fast has the potential to achieve a valuation of 2 times its revenues. Before the startup issues its IPO, it will likely be valued at less than 2 times revenue because of the lack of liquidity of its shares. See: Liquidity discount.

noun

• A large indefinite number.
  • usage: "a battalion of ants"; "a multitude of TV antennas"; "a plurality of religions"
  • synonyms: battalion, large number, plurality, pack
• A large gathering of people.
  • synonyms: throng, concourse
• The common people generally.
  • usage: "separate the warriors from the mass"; "power to the people"
  • synonyms: masses, mass, hoi polloi, people, the great unwashed

• (n.) The state of being many; numerousness.
• (n.) A great number of persons collected together; a numerous collection of persons; a crowd; an assembly.
• (n.) A great number of persons or things, regarded collectively; as, the book will be read by a multitude of people; the multitude of stars; a multitude of cares.