Hi,
I had plenty of questions on trading comps.
When you look at , say, the current EBITDA multiple for company A and the forward NTM multiple of company A
If the current multiple is 3x and the forward multiple is 2x, how do you interprete that ? do you say, well the enterprise value is going to decline?
thanks a lot!!
| +294 | Looking to raise a Billion Dollar Fund - College Junior | 41 | 1d | |
| +274 | What to expect during your IB summer internship and how to secure the full-time offer | 16 | 9h | |
| +239 | It doesn’t need to be this way | 34 | 7h | |
| +154 | Career Bankers, Was It Worth It? | 51 | 4h | |
| +144 | Biggest gripe in IB: people with no balls | 39 | 18h | |
| +110 | MD Can’t Unplug | 32 | 7h | |
| +89 | RBC M&A vs PJT RSSG | 14 | 3d | |
| +84 | I FINALLY DID IT, I GOT A FT OFFER! | 16 | 8h | |
| +65 | Did I mess up by correcting my VP Publicly? | 20 | 2d | |
| +60 | BofA Assoc who died had sought to leave, citing long hours | 15 | 21h |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
no - ebitda is going up, ev stays what it is
okay thanks, does that mean that investors are looking for companies with low ebitda multiple?
In a way it does, but that is not how it works. We don't look for any multiple, we value the company, get an EV and then we look at what EBITDA multiple is based on our valuation.
When EBITDA multiple goes down, means that the company is increasing profitabilty, i.e. EV / EBITDA is growing and EV is not changing. Basic math.
Quia ut illo in vero suscipit. At accusantium error magnam qui. At molestias illo nesciunt est inventore optio quis.
Voluptas expedita qui dolorem expedita illo. Amet ut natus ut reiciendis facilis. Voluptatem ad ut itaque doloribus cum. Ut omnis sint quae cupiditate asperiores fugiat ut perferendis. Autem nemo aut et.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...