How would you value a company with negative cash flows (or no revenue yet)?

Answer

Options depending on stage: (1) Forward-looking multiples — EV/NTM Revenue, EV/Forward EBITDA, EV/User; (2) Sum-of-the-Parts if there are distinct business lines; (3) Comparable transactions in the same space (especially for biotech and early-stage tech); (4) Risk-adjusted DCF projecting out 10+ years to the point of positive cash flow (common in biotech with probability-weighted milestones); (5) Pre-money/post-money for early-stage venture; (6) Cost-based or replacement value for asset-heavy distressed situations.