Absolute approach with multiples

i usually tend to value companies on a catalyst/upside/downside scenario based approach and try to give a sense of the possible variation in % as i believe that, while time consuming, it is a pseudo solid way of not getting totally toasted by the investment experience.

that being said,i've always tried to link the multiples to fundamental things and consequently researched as much as possible, on this forum, on the internet and on different books but still fail to look for a comprehensive and flexible approach. for instance i found a multiple primer on the internet (NYU) which was helpful but rather limited in the way that it offered formulas with consistent limitations (=no flexibility) in the way they approached factors which affect the price of a stock.

first of all, i'd like to find some formulas that link
-growth (of cash/earnings/rev) to capital necessary to support said growth (i know that if you do thing by the book you should be able to deduce it from the overall industry/microeconomic/financial analysis but still)
-something that links PE to the required return on the stock expected by investors rather than the cost of capital (and planning to use it in a "reverse engineering" fashion)

am i overthinking this or simply going wildly off road speaking non sense?

1 Comments
 
Best Response

Voluptatem necessitatibus dignissimos ut quis tempore dolores et qui. Eaque nihil molestiae aut sit eveniet vero similique. Veniam asperiores blanditiis voluptas illo ea. Autem deserunt perspiciatis molestiae.

I'm talking about liquid. Rich enough to have your own jet. Rich enough not to waste time. Fifty, a hundred million dollars, buddy. A player. Or nothing. See my Blog & AMA

Career Advancement Opportunities

July 2026 Investment Banking

  • Evercore 01 99.4%
  • Moelis & Company 01 98.9%
  • JPMorgan 01 98.3%
  • Guggenheim Partners 01 97.7%
  • Morgan Stanley 07 97.1%

Overall Employee Satisfaction

July 2026 Investment Banking

  • Moelis & Company No 99.4%
  • Evercore No 98.9%
  • Morgan Stanley 01 98.3%
  • BMO Capital Markets 12 97.7%
  • Banco Santander 01 97.1%

Professional Growth Opportunities

July 2026 Investment Banking

  • Evercore 01 99.4%
  • Moelis & Company 01 98.9%
  • Morgan Stanley 06 98.3%
  • Goldman Sachs 01 97.7%
  • JPMorgan 01 97.1%

Total Avg Compensation

July 2026 Investment Banking

  • Vice President (15) $434
  • Associates (46) $258
  • 3rd+ Year Analyst (8) $210
  • 2nd Year Analyst (22) $179
  • Intern/Summer Associate (13) $156
  • 1st Year Analyst (80) $150
  • Intern/Summer Analyst (73) $101
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

1
redever's picture
redever
99.2
2
Secyh62's picture
Secyh62
99.0
3
kanon's picture
kanon
99.0
4
BankonBanking's picture
BankonBanking
99.0
5
GameTheory's picture
GameTheory
98.9
6
DrApeman's picture
DrApeman
98.9
7
CompBanker's picture
CompBanker
98.9
8
dosk17's picture
dosk17
98.9
9
Betsy Massar's picture
Betsy Massar
98.9
10
numi's picture
numi
98.8
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...”