KEV

Keystone Enterprise Value Index

Value drivers today and the gap to peak valuation. What caps your multiple, and what would move it.

The KEV Index measures the value drivers present in the business today and the structural gap to peak valuation.

How attractive are you to a buyer?

Enterprise value is not a single number. It is a function of revenue quality, margin durability, growth defensibility, and the cleanliness of the financials a buyer will test. The KEV Index scores the value drivers present today and quantifies the gap between your current valuation and peak valuation, so every recommendation maps to a multiple.

How it is scored

Revenue Quality
Concentration, retention, recurring vs transactional
Margin Durability
Defensibility of gross and EBITDA margin
Growth Defensibility
Can growth continue without the owner?
Financial Cleanliness
Reporting maturity a buyer can diligence
Transferability
How tied the business is to the founder

Every value driver scored maps to a concrete action a buyer would reward.

How this index fits the assessment

The KEV is one of five proprietary scores inside the Keystone Value Creation Assessment™. Every recommendation ties back to improving one or more of them.

Related services

Start with where you actually stand.

The Keystone Value Creation Assessment audits your last 12 to 36 months and gives you a written summary whether you engage us or not. If there is not a clear opportunity to create value, we will tell you directly.

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