Greg Speicher over at GregSpeicher.com put together a nice concise blog post today that was essentially a checklist for the 10 essential questions to ask when deciding what multiple to pay for a stock. This was based on a post at Abovethecrowd by venture capitalist Bill Gurley. This is the type of thing that investors might find useful so I thought I would post the checklist. Also, for those of you interested I’ve included links to the posts by Greg Speicher and Bill Gurley. If you take a look closely, you'll see some overlap between this checklist and the ones I posted in May 2011 which discuss the Philip Fisher Methodology of assessing a firm.
10 Essential Questions to ask when deciding what multiple to pay for a stock by Greg Speicher
All Revenue Is Not Created Equal: The Keys to the 10X Revenue Club by Bill Gurley
The Checklist:
The Questions to Ask When Deciding Appropriate Multiples for a Stock
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