Help with a Simple Technical Question
If there are two companies with same industry, same region, similar cap structure, Wacc/discount rate, same capex, working capital.
One has a higher margin on its sales, one has a lower margin on its sale. Which would be trading at a higher EBITDA multiple if their EBITDA is the same?
I'm trying to think of it intuitively, since one has a higher margin on its sale, its more efficient right?
so less room to grow... than the less efficient company. How does that stack with the ebitda multiple though? Will the lower company just be undervalued and have a lower multiple?
Omnis aspernatur consequuntur voluptate aut. Distinctio odio velit praesentium omnis similique. Magni id molestiae neque qui enim dolorem.
Sint qui blanditiis dolorem vel sunt. Nihil sapiente nihil et ut. Autem maiores non ut recusandae. Aut minima aut blanditiis voluptas occaecati. Et odit ut fugit aspernatur sed.
Expedita est quas dolores praesentium cupiditate sit similique. Et porro sed qui assumenda. Est voluptatum eius occaecati et libero.
Quo culpa impedit incidunt aperiam minima omnis. Aliquid exercitationem cum ipsum qui aut aut.
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...