EV / EBITDA Multiples
PrimaryWorkhorse PE method; LTM or NTM EBITDA on comps.
- EBITDA positive, full year
- Liquid comp universe (5+ peers)
- Not for pre-EBITDA or distressed
IPEV §3.4
Jolv · Valuation engine design
Method to Asset Class Decision Tree
Illustrative mapping — verify IPEV and your policy.
PE Track
Buyout · Growth Equity · Infrastructure · Credit
EV / Revenue Multiples
PrimaryWhen EBITDA negative or not meaningful.
- Revenue predictable
- EBITDA negative or margin ramp
- Not if revenue volatile alone
IPEV §3.4
EV / EBIT Multiples
CorroborativeHigh D&A vs EBITDA.
- D&A material
- Industrial / infra tilt
- Not if EBIT distorted by one-offs
IPEV §3.4
Price of Recent Investment
PrimaryEntry price calibrates the model; never a standalone fair value.
- Calibrate inputs to the entry price (§2.6)
- Re-assess at every measurement date
- Carry the price forward as fair value
IPEV §3.10
DCF
CorroborativeStable cash flows; cross-check.
- Infra / concessions
- Corroborative to multiples
- Not primary for high-growth
IPEV §3.7
NAV / Adjusted Book Value
SpecialistFoF, LP stakes, asset-backed.
- Fund interests
- Asset-heavy holdcos
- Not earnings-driven ops
IPEV §3.9
VC Track
Seed · Series A–C · Growth · Pre-IPO
Price of Recent Investment
PrimaryRound price calibrates the model; not a default for other share classes.
- Orderly round with new, informed investors
- Re-assess against milestones each quarter
- Apply the round price to other classes without analysis
IPEV §3.10
Revenue Multiple (ARR / NTM)
PrimarySeries B+ with ARR.
- ARR traction
- SaaS or sector comps
- Not pre-revenue
IPEV §3.4
OPM / Backsolve
PrimaryPreferred stack and classes.
- Liquidation preferences
- Live cap table
- Cannot run without cap table
IPEV §3.10, §5.12
Milestone-Based Valuation
PrimaryPre-revenue; adjust vs plan.
- Pre-product
- Stale round >18m
- Milestones set at investment
IPEV §3.10
Scorecard Method
CorroborativeSeed cross-check.
- No meaningful revenue
- Cross-check PRI
- Document scores
Outside IPEV
Liquidation / Write-Down
SpecialistDistress; waterfall proceeds.
- Runway <6 months
- MAC
- Coordinate with auditor
IPEV §2.5, §5.4
Shared Layer
Applies to both PE and VC tracks
Sensitivity Analysis
Always requiredPresent a range where appropriate; document drivers.
- On primary outputs
- Document assumption bands
IPEV §2.5
Calibration to Entry Price
Always requiredCalibrate inputs at the transaction date; explain the drift at each measurement date.
- Set at entry, or at a later orderly transaction
- Gap to comparables explained and re-assessed
IPEV §2.6
Asset-class to method mapping
| Asset type | Track | Primary method(s) | Corroborative | Key decision trigger |
|---|---|---|---|---|
| Profitable buyout (EBITDA+) | PE | EV/EBITDA | DCF | LTM EBITDA+; comp universe |
| Growth equity (pre-EBITDA) | PE | EV/Revenue | EV/EBITDADCF | Margin transformation |
| Post-acquisition (0–12 months) | PE | Price of Recent Inv. | EV/EBITDA | No material change |
| Infrastructure / real assets | PE | DCF | EV/EBITDANAV | Contracted cash flows |
| LP stake / fund-of-funds | PE | NAV | — | GP NAV with haircuts |
| VC seed / pre-revenue (0–18m) | VC | Price of Recent Inv. | MilestoneScorecard | Recent round; no MAE |
| VC pre-revenue stale round | VC | Milestone-based | Scorecard | PRI not calibrated |
| VC Series B+ ARR | VC | Revenue MultipleOPM | Price of Recent Inv. | ARR + prefsOPM check |
| VC complex cap table | VC | OPM / Backsolve | Revenue Multiple | Multiple classes / prefs |
| Distressed (PE or VC) | Both | Liquidation / Write-down | — | Runway or MAC |
PE track method
VC track method
Corroborative
Shared / both
OPM often required with prefs — confirm policy