So the application: company value = forecast price-earnings ratio × company's future 12 months' profit. The company's profit in the next 12 months can be estimated by the company's financial forecast, so the biggest problem in valuation is how to determine the forecast P/E ratio.
Generally speaking, the forecast P/E ratio is a discount of the historical P/E ratio. For example, the average historical price-earnings ratio of an industry on Nasdaq is 40, and the forecast price-earnings ratio is about 30. For unlisted companies in the same industry and scale, the reference P/E ratio needs to be discounted again, which is about 15-20. For small start-ups in the same industry, the reference P/E ratio needs to be discounted again and become 7-6544.
This means that the current domestic mainstream foreign VC investment is roughly a multiple of the price-earnings ratio of enterprise valuation. For example, if a company predicts a profit of $654.38+$00,000 in the second year after financing, then the company's valuation is roughly $ 7-654.38+$00,000. If investors invest $2 million, the company will sell about 20%-35% of the shares.