Valuation multiple time frame, which year to use?
What's the right framework to use when thinking about applying a forward multiple (eg. 1-yr forward EV/Sales, EV/EBITDA) during different times of the year?
For example, assuming we're in 2018, when you're looking at investing in a stock and you're in Q1 2018 (Jan, Feb, March), do you apply the forward multiple to 2018 sales and/or ebitda? Or should you apply to 2019E projections (eg. apply 2019E sales and/or ebitda multiple to 2019E projections)?
Relatedly, if you're evaluating a stock valuation and your current time period is Q2/Q3 2018, is it still valid to apply the forward '18 multiple or should you move on to '19E multiples?
Hope this makes sense.
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