Relevant multiples for each industry?
Hi, does anyone know of a resource with a list of relevant multiples/ratios/drivers for each industry? Thanks
Hi, does anyone know of a resource with a list of relevant multiples/ratios/drivers for each industry? Thanks
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I know Rosenbaum and Pearl had a pretty good overview for different industries.
http://en.wikipedia.org/wiki/Financial_ratio
Where can i find a multiple overview by industry? (Originally Posted: 08/01/2015)
Hi everyone,
I am looking for a place where I can find a quick and simple overview of the most recent multiples by industry?
I do not work in investment banking and rarely used multiples in my job. However, I have experience in some interviews that you are asked what a specific multiple is for a certain industry.
When I think about multiples I refer to EBITDA, EBITA, EBIT etc.
Thanks
Can not post links, rule of the forum...... but google for "Yahoo industry multiples" and for "Damodaran online useful data". Yahoo does not include Ebitda but has some other reference points. Damodaran is a bit outdated but maybe a starting point.
awesome -- very helpful
Ratio industry standards (Originally Posted: 07/21/2012)
I'm putting together a 3 statement model to submit with an application for an ER associate position. I want to include a ratio analysis section, but I need industry standards against which to compare the ratios. Does anyone know of where I can find industry standards?
I'm analyzing HCA Holdings: Health Care Providers & Services Industry $32MM+ Revenues $26MM+ Assets
finding an industry's multiple (Originally Posted: 02/27/2013)
how can I find a more detailed industry multiples?
I'm trying to model a merger arb situation, and I'm having trouble finding a number I'm confident in
It's a tech storage device manufacturer. Morningstar said the multiple for a company in my industry was 20.2x
I don't know how morningstar calculates that so i was looking for more info to no avail
would really appreciate help here...with the actual multiple or search tips
I usually get it from my comps...
I think you should take a step back.
If you don't know a) how to interpret/replicate a Morningstar multiple or b) how to find your own industry multiples, you should not be trying to look at merger arb trades which will complicate things with synergies, control premiums, etc plus non-fundamental issues like deal psychology and regulatory reviews. Instead you should be focused on much more basic understanding of valuation techniques.
For example, you don't say what type of multiple it is (EBITDA vs EPS? Trailing vs forward? Trading multiple vs. takeover multiple?). I assume (hope) that you know and just didn't mention it. If you know the company and Morningstar's multiple you should be able to try to replicate it from the company's filings.
I would also make sure you understand, on an extremely basic, conceptual level, "what" a multiple is and "why" it matters/why a company "does" or "should" trade at a certain multiple.
Two other notes/comments: A) the "right answer" for an investment decision is almost never "the multiple is x but it should be y" B) Proxy statements generally include fair value opinions that list comparable company/transaction multiples that the advisory firm has chosen.
Tbh, although I knew different multiples exist, I had not thought of defining the type of multiple (I usually think of it in terms of EV/EBITDA). This is just learning for me. I would never go in to anything with this as a representation of my skill...I really want to get this down (even if it's just for leisure...i know, dafuq right?)
I'll definitely take a look at the proxy now that I know it exists, but not until I read a little bit more. I know strategic rationale is tantamount, but I want to get the model mechanics and thought process out of the way. I feel like by doing that I can then begin to concentrate on corporate strategy (e.g., synergies, hurdles, etc)
Thanks KP
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