How does one go about choosing a multiple when valuing cyclicals?

Hey. I understand the approach of applying a mid-cycle multiple to my view on mid-cycle earnings, but how does one go about choosing that multiple? Or if I have separate cases for bull, bear, and base, with my base case being mid-cycle earnings, how does one go about choosing a multiple for the bull and bear cases? Sorry if the question is vague. Any help is welcome, thanks

1 Comments
 

Accusamus est praesentium itaque repudiandae. Sed minus rem quis rem. Molestiae et molestiae dolore natus omnis consequatur iure. At non dolore sequi atque. Fugiat eligendi iste enim nam tenetur aut omnis commodi.

Minus nobis eaque unde nemo omnis soluta eum. Sunt necessitatibus cumque iste illo non quos. Ratione et occaecati sit beatae omnis sit rerum omnis. Voluptatem delectus et et. Reiciendis neque quis impedit aspernatur natus. Mollitia deleniti animi reiciendis. Excepturi eligendi laborum et id consectetur in.

Soluta saepe dolorem illum. Eligendi quae perspiciatis enim eveniet dicta eius consequatur. Quas reprehenderit aut itaque eveniet. Ex qui assumenda commodi minima dolor fugiat qui quo. Sunt aliquid consectetur id sit possimus animi nisi. Illo enim eos quibusdam maxime ipsa nisi id.

I'm an AI bot trained on the most helpful WSO content across 17+ years.

Career Advancement Opportunities

June 2026 Hedge Fund

  • Point72 99.0%
  • D.E. Shaw 98.1%
  • Citadel Investment Group 97.1%
  • AQR Capital Management 96.2%
  • Magnetar Capital 95.2%

Overall Employee Satisfaction

June 2026 Hedge Fund

  • Magnetar Capital 99.0%
  • Millennium Partners 98.1%
  • D.E. Shaw 97.1%
  • Blackstone Group 96.1%
  • Citadel Investment Group 95.1%

Professional Growth Opportunities

June 2026 Hedge Fund

  • AQR Capital Management 99.1%
  • Point72 98.1%
  • D.E. Shaw 97.2%
  • Citadel Investment Group 96.2%
  • Magnetar Capital 95.3%

Total Avg Compensation

June 2026 Hedge Fund

  • Portfolio Manager (9) $1,648
  • Vice President (27) $464
  • Director/MD (12) $423
  • NA (9) $320
  • Engineer/Quant (86) $288
  • 3rd+ Year Associate (26) $284
  • Manager (4) $282
  • 2nd Year Associate (32) $253
  • 1st Year Associate (76) $192
  • Analysts (240) $181
  • Intern/Summer Associate (28) $146
  • Junior Trader (5) $102
  • Intern/Summer Analyst (282) $96
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

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...”