7 Ways To Measure Business Value | Ep 702
The Game w/ Alex Hormozi - A podcast by Alex Hormozi
“You can bet on yourself, but there are so many more stories of guys who bet everything on themselves at the casino and walked away empty handed.” Today, Alex (@AlexHormozi) shares the key aspects of business valuation, debunking common misconceptions and highlighting seven critical metrics: contract value, lifetime revenue, business valuation, yearly revenue, profit or EBITDA, net free cash flow, and personal net worth. At the end, he ranks which of the metrics are best to use and why you should not be looking at the others to determine the value of a business.Welcome to The Game w/Alex Hormozi, hosted by entrepreneur, founder, investor, author, public speaker, and content creator Alex Hormozi. On this podcast you’ll hear how to get more customers, make more profit per customer, how to keep them longer, and the many failures and lessons Alex has learned on his path from $100M to $1B in net worth.Timestamps:(0:56) - 1st Metric: Contract value(2:35) - 2nd Metric: Lifetime revenue(4:58) - 3rd Metric: Business valuation(7:10) - 4th Metric: Yearly revenue(8:14) - 5th Metric: Yearly profit(10:11) - 6th Metric: Net free cash flow(11:07) - 7th Metric: Net worth(13:32) - Ranking each business valuation metricFollow Alex Hormozi’s Socials:LinkedIn | Instagram | Facebook | YouTube | Twitter | Acquisition(This episode is a re-run. Original airdate was on July 1, 2021)