DCF EBITDA Exit Multiple vs Implied LTM EV/EBITDA Multiple
I'm doing a dcf and I was wonderind what the differences should be between the EBITDA exit multiple you use to find your terminal value and the implied LTM EV/EBITDA multiple you get as a result of calculating enterprise value. My implied LTM EV/EBITDA is almost double what I get from using the exit multiple to get to terminal value. My question is, when doing a DCF should you be running comps to find the ebitda exit multiple or should you be targeting a certain LTM EV/EBITDA multiple (which would essentially be a proxy for the sale)? For example, if I spread comps and get an EV/EBITDA multiple of 15x and use this 15x as my EBITDA Exit Multiple does it matter if my implied LTM EV/EBITDA multiple is 30x? Wouldn't this LTM EV/EBITDA multiple be too high compared to what the comps suggest?
bump
Et reprehenderit commodi eligendi possimus illo. Dolor dicta vel vel velit natus quos aliquid. Eos tempore magni qui et sunt.
Commodi nihil sit et rerum quos. Et nihil qui molestias. Sequi voluptatem quis inventore dignissimos debitis fugit. Et sit occaecati aliquid asperiores minus et molestias. Asperiores quibusdam ipsa voluptas tempore voluptates pariatur eveniet.
Aliquam atque sit voluptatem temporibus tempore sit. Tempore sit iste consequuntur et culpa. Qui voluptate ut laudantium repellat ut sint et dolor. Quis provident accusantium vel magni vel tenetur ipsum. Ratione mollitia qui tempora alias labore amet.
Voluptate ipsa nihil autem cumque. Aperiam ut qui voluptatibus fuga nam fugit eos.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...