is a low times multiple bad 
a low times multiple isn t necessarily bad it simply means the company is being valued lower than other companies if a seller is motivated to sell having a low times multiple may be a good thing as it may be seen by buyers as a cheaper potentially bargain price compared to companies with much higher multiples the bottom linethe times revenue method of valuing a company has the virtue of being straightforward it s revenue for a certain period multiplied by a set factor usually one or two to arrive at a figure that reflects the company s value it has a big drawback though cash flow does not equal profits and a valuation based on the times revenue method does not reflect the costs of doing business there is another drawback that is shared by every method of valuation all are by necessity based on past performance and none can accurately predict future sales 