Public multiples by sector

1. Growth and margin

   A company growing well above the listed median, with a comparable gross margin, justifies a premium; the practical rule is to compare growth plus margin against the companies in the group.

2. Size

   The listed companies in the universe book tens or hundreds of millions of dollars in revenue. At a smaller scale, execution risk rises and the asset is less liquid: a discount.

3. Geography and country risk

   The LatAm and global medians in each sector show the differential the market already charges for currency, rates and depth of capital. It is not always a discount: it depends on the sector and the moment.

4. Stage

   From seed to growth the basis of comparison changes: at early stages team and market weigh more than any multiple; by Series B or C the revenue multiple becomes the reference.

5. Illiquidity

   A private stake cannot be sold in a day. The illiquidity discount is negotiated, not tabulated, and it widens when the exit window closes.

6. Structure

   Liquidation preferences, participation, anti-dilution and convertibles change the economic value of the same headline valuation. Comparing valuations without comparing terms is comparing apples with oranges.

Each adjustment is documented within a mandate, with the comparables, the disclosed private transactions in the sector and the proposed terms. G2 does not issue valuation opinions outside a mandate.