DCF Question Regarding Exit Multiple
I am trying to value a company for a stock pitch and am slightly confused, so any help would be appreciated. I understand that all comps analysis is typically based on NTM EBITDA (which is calculated by dividing current EV by next-year's consensus EBITDA), to derive at a valuation that shows what my company should be worth today given its future growth. However, should I apply this same logic when slapping an exit multiple in the DCF for my company? I believe my company currently trades at around 8x NTM EBITDA (I am valuing it on an annual basis, so in theory this means that this company is 8x its 2025 EBITDA as I only have the full numbers up to 2024). But if I am applying the same 8x NTM EBITDA Exit Multiple, I would be applying it to 2029 (as I have forecasted 5 years out, from 2025-2029), which creates a mismatch. Am I thinking about this the wrong way? Would appreciate any insight or clarification.
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