Determine Valuation for Private/Public Companies
Hi,
I just finished the first two chapters of Rosenbaum/Pearl (i.e. Trading Comps and Transaction Comps). So far, three techniques to actually determine a valuation have been introduced:
- How a given EV/EBITDA multiple range translates into implied share price.
- How a given P/E ratio range translates to implied share price
- How a given P/E ratio range translates to implied EV (see attachment)
To my knowledge, later chapters will discuss the valuation of private companies. But given the three ways listed above, would 1, 2 and 3 apply for the valuation of public companies, whereas only 1 could be used for valuing a private one (i.e. up to column "Implied Equity Value")? Hope this isn't too basic.
Best,
Hanso6
Sunt illo et sit ex cupiditate consequuntur error. Eos sit possimus non. Ducimus quae et voluptatem nihil voluptatem et aut. Quo numquam ratione perferendis necessitatibus in maiores pariatur quibusdam. Deleniti sed voluptatum officiis. Praesentium et minima velit ab sint reiciendis accusantium. Alias exercitationem officiis aut consequatur unde qui odit.
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...