1/ "If the product is software and thus can produce software gross margins (≥ 75%), then it should be valued as a software company. If the product... cannot produce software GMs then it needs to be valued like similar businesses with similar margins" FW avc.com/2019/09/the-gr…
2/ "All things being equal, gross margin percentage should have a direct impact on price/revenue multiple, as there will obviously be more gross margin dollars to contribute to free cash flow." abovethecrowd.com/2011/05/24/all…
3/ "In the startup world, low gross margin almost always equals death which is why many Internet retailers have failed or are failing (many operated at 35% gross margins). Many software companies have >80% gross margins which is why they're more valuable." bothsidesofthetable.com/what-is-the-ri…
