How do I use multiples for stock pitches?
Hello everyone,
I will have my final round SA interview (ER) this week, and currently prepare for stock pitches.
One thing I wanna ask to you guys is about expected EPS and EBITDA.
As far as I know, if you use PE or EV/EBITDA for stock valuation, you would have to know expected EPS and EBITDA values (ex. 2015e EPS or 2015e EBITDA).
So, your TP might be "2015e EPS x your PE multiple".
I can pick my PE multiple like industry average. However, how can I get 2015e EPS or EBITDA?
Do I need to build a full earnings model for a company?
I think I won't have time to explain my model line by line during interview....
Can I use consensus 2015e EPS and EBITDA for my stock pitch purpose?
Many thanks in advance!!!
I'm not quite sure I understand what the point of using consensus estimates would be. Do you?
Sorry for confusion. Bloomberg provides the consensus for 2015e EPS or EBITDA on EEO page. If I use multiple method for valuation, can I use those numbers, instead of building earnings model, forecasting IS/BS/CF and finally calculating 2015e EPS and EBITDA by myself?
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