Help on comps analysis and valuation multiples
Hey WSO members,
No, there is no hot girl in my internship group and I'm not using something like that for clickbait lol.
I'm asking for help to look at a football field analysis with different valuation metrics. These multiples are based on a selection of companies in the automotive industry.
Why is there a noticeable difference between the enterprise value metrics and the equity value metrics? EV multiples suggest that the stock is undervalued, and the equity value multiples suggest that the stock is fair valued.
Also, the historical 52 week trading range is in line with the EV multiples. Is there an explanation to the correlation?
Thanks in advance, much appreciated!
| Attachment | Size |
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| Comps.pdf 43.91 KB | 43.91 KB |
There is too much to unpack here, and that's excluding your shitty joke intro.
Get rid of all the multiples except EBITDA 21 and add in 22. Maybe Revenue 21 and 22 if it's one of those autotech startups. Double check every single number because a lot of them are clearly incorrect.
Hey, thanks for taking a look at the comps.
Why would we not use any of the multiples except EBITDA?
The group of companies are not autotech startups, they are traditional automakers.
This comps is used for evaluating the stock and not for an acquisition. I read online that revenue multiples would be used for acquisitions in IB, and earnings multiples would be used to evaluate the stock instead.
I think you should go back to the basics before trying to output something like this. Join a finance club and ask upperclassmen or take some valuation/accounting classes.
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