Best Response
bmwhype:
what is the difference between the two? they both look at multiples as a valuation parameter but...

Yea even though both of them are multiples,there is a big difference in the two:

For example if you look at EV/EBITDA multiple, for both methods though EBITDA is same but there is a difference in the way you come up with EV, for market multiple the MarketCap is based on the publicly traded share price but in Transaction multiple its the based on PRICE PAID FOR Equity, and similarly for the Market multiple the Debt is interest bearing debt but for the Transaction multiple it is the Debt Assumed.....

so on the face of it, they look similar but they are not. Moreover for the market multiples comps have to be as close as possible in terms of there business to the company being analyzed but for the transaction they have more emphasis on the size of the deal (though still industry is some what important)....

Hope i am correct and it helps you....

 

Laboriosam soluta et adipisci ea ut ipsam. Eos doloribus sed id magni ex temporibus.

Consequatur qui et impedit vero atque. Optio repudiandae iusto explicabo illo voluptatem sint sed. Repudiandae molestiae dolor deleniti mollitia mollitia ipsam reiciendis. Et et quibusdam impedit modi est. Deleniti illum harum incidunt placeat quas soluta officiis. Tempore aut exercitationem et quas. Est ipsam quis accusantium aut.

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
BankonBanking's picture
BankonBanking
99.0
4
Betsy Massar's picture
Betsy Massar
99.0
5
dosk17's picture
dosk17
98.9
6
CompBanker's picture
CompBanker
98.9
7
kanon's picture
kanon
98.9
8
GameTheory's picture
GameTheory
98.9
9
DrApeman's picture
DrApeman
98.9
10
Jamoldo's picture
Jamoldo
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...”