How should the revenue multiplier for company valuation change if you can only sell to each unique customer once?

Very roughly, it is cut in half.

Recurring revenue companies are valued at about 2x (and sometimes much more) their non-recurring customers.

For a very visceral example, Adobe’s stock has more than 5x’d since it moved from 15% to 90% recurring revenue:

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Published on August 16, 2017

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