Why did a similar company get a different valuation from mine?

Two companies with the same revenue can look very different to an investor. The difference lies in how concentrated their customers are and how much revenue repeats. It also lies in how protected their margins are, how strong their governance is, and how easy the business is to grow.

How clearly each of these is shown, with evidence, matters as much as the facts themselves.

How the investor reads each difference:

• A few large customers. An investor sees risk, until the years and contracts behind them are shown.
• Repeat orders. Orders that return are paid for. Orders won afresh are marked down.
• Governance. What cannot be verified is priced as risk, across every number in the document.
• Barriers to entry. Anyone can enter some businesses tomorrow. Almost nobody can enter others.
• What only you do. An advantage never stated is never paid for.
• Scalability. Capital that multiplies, or capital that merely replicates.