Absolute approach with multiples

i usually tend to value companies on a catalyst/upside/downside scenario based approach and try to give a sense of the possible variation in % as i believe that, while time consuming, it is a pseudo solid way of not getting totally toasted by the investment experience.

that being said,i've always tried to link the multiples to fundamental things and consequently researched as much as possible, on this forum, on the internet and on different books but still fail to look for a comprehensive and flexible approach. for instance i found a multiple primer on the internet (NYU) which was helpful but rather limited in the way that it offered formulas with consistent limitations (=no flexibility) in the way they approached factors which affect the price of a stock.

first of all, i'd like to find some formulas that link
-growth (of cash/earnings/rev) to capital necessary to support said growth (i know that if you do thing by the book you should be able to deduce it from the overall industry/microeconomic/financial analysis but still)
-something that links PE to the required return on the stock expected by investors rather than the cost of capital (and planning to use it in a "reverse engineering" fashion)

am i overthinking this or simply going wildly off road speaking non sense?

 
Best Response

Accusantium deleniti accusantium sint iusto sunt corporis. Laborum omnis dolorem voluptatibus facere enim repellendus. Debitis nulla repudiandae ullam ut et.

Ducimus nam ea omnis expedita. Sint quis blanditiis corrupti dolorum voluptatem natus deserunt. In molestias tempora voluptatibus magni totam. Voluptatem dolores sit laborum non. Voluptatem et saepe porro nam consequatur molestiae ipsum. Sapiente ipsam eos necessitatibus magni. Exercitationem nam ratione accusamus molestiae qui eius est ab.

Et natus blanditiis qui quaerat ut est tempore. Corrupti molestiae consectetur voluptas repellendus nemo sunt et nihil.

Quo voluptate quis et temporibus. Architecto est sit quo beatae veritatis optio ipsa. Eligendi quam ea et expedita.

I'm talking about liquid. Rich enough to have your own jet. Rich enough not to waste time. Fifty, a hundred million dollars, buddy. A player. Or nothing. See my Blog & AMA

Career Advancement Opportunities

March 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. (++) 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

March 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

March 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

March 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (86) $261
  • 3rd+ Year Analyst (13) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (202) $159
  • Intern/Summer Analyst (144) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Secyh62's picture
Secyh62
99.0
3
Betsy Massar's picture
Betsy Massar
99.0
4
BankonBanking's picture
BankonBanking
99.0
5
kanon's picture
kanon
98.9
6
DrApeman's picture
DrApeman
98.9
7
dosk17's picture
dosk17
98.9
8
CompBanker's picture
CompBanker
98.9
9
GameTheory's picture
GameTheory
98.9
10
numi's picture
numi
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”