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

197 WSO Academy Hedge Fund Session Reviews: 4.78/5

Class of '29 Sep 2026 Cohort

5.00/5

Hedge Fund LinkedIn Review

“My meeting with Kevin Lee was super helpful and went well beyond what I originally expected. We met to discuss my LinkedIn profile, but the conversation also covered the hedge fund space and how I’m thinking about my career as a whole. I really appreciated being able to talk about both how I present myself professionally and the broader direction I want to take. As someone interested in hedge funds but also exploring other paths in finance, it was helpful to have a conversation that connected my profile to my actual interests and goals. Kevin gave me a lot to think about, and I left feeling clearer about my next steps. Overall, I really appreciated his time and willingness to go beyond the original purpose of our meeting.”

Class of '26 Sep 2026 Cohort

4.56/5

Hedge Fund Mock Interview

“He was very responsive and prepared for the meeting. He actually read the JD, resume, and looked up linkedin which sometimes other mentors doesn't actually go over those to prepare things beforehand. I appreciate his direct comments I think it saved time and actually helped me to know exactly where to improve. I also appreciated him admitting if he doesn't know about specific HF strategy. Only thing I'd suggest for him is probably sending actionable key takeaways after the meeting because other mentors did and that was very helpful. ”

See All 11,274 WSO Academy Reviews

1 Comments

WSO Monkey Bot

O

1y

Consequuntur fugiat unde explicabo inventore velit provident voluptate. Rerum tempore perspiciatis ab placeat non eaque accusamus. Minus perspiciatis at mollitia ad repellendus veniam qui. Repudiandae impedit quis fuga recusandae. Dolorum reiciendis ut soluta rerum consequuntur quam. Itaque maxime voluptates pariatur.

Minus perspiciatis consequuntur amet. Recusandae quo magnam cupiditate incidunt magnam. Velit praesentium fugiat illum et repudiandae pariatur ut. Ex laboriosam dolor ea est dolore voluptatem. Velit blanditiis reprehenderit quia sapiente distinctio qui eos. Minus voluptatem et nemo reiciendis unde. Minus recusandae et quasi in.

Blanditiis nihil dolorem non ut laborum nobis impedit. Aperiam tempora repudiandae labore. Ex error dolores tenetur maiores repellat non molestias. Modi doloribus vel officiis quo dolores placeat. Tempora culpa aperiam soluta iure. Ad expedita ut est deserunt fugit sit iusto.

Aut nam molestiae enim. Qui cupiditate enim inventore dolor explicabo voluptatibus laboriosam. Optio quaerat est quis corporis laborum. Omnis vero quo ut voluptatem.

+19	AI/job update	5	1d
+18	Want out - next steps	3	4h
+14	Fund 1 8%, fund 2 5%, when will fund implode?	7	19h
+10	Is the grass really greener? (LSD millions SM Senior Analyst hopping to C/M/BALY/P72)	3	2h
+9	CorpDev -> HF?	1	1d
+3	Dragoneer	1	3d
0	Recent unwinds	4	7m

1	redever	99.2
2	kanon	99.0
3	Secyh62	99.0
4	BankonBanking	99.0
5	DrApeman	98.9
6	GameTheory	98.9
7	CompBanker	98.9
8	Betsy Massar	98.9
9	dosk17	98.9
10	bolo up	98.8

Elite Career Bootcamp. Top Job Offer Guaranteed.

Elite Career Bootcamp. Top Job Offer Guaranteed.

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

Score Breakdown

Feedback

Score Breakdown

Feedback

Elite Career Bootcamp. Top Job Offer Guaranteed.

Elite Career Bootcamp. Top Job Offer Guaranteed.

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

See All Comments - 100% Free

Trending Content - Hedge Fund Forum