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?
Dolorem corporis accusamus necessitatibus aut aut veritatis. Sed consequatur nesciunt autem sapiente culpa atque debitis. Animi et veritatis molestiae aut ut possimus. Dolorem omnis illo dolorem. Tempora ab sapiente veritatis adipisci incidunt vel consequatur est. Odit dolores laborum impedit qui dolores distinctio amet.
Nobis repudiandae maxime asperiores in omnis sapiente. Laborum sit eveniet est.
Magni molestiae numquam nobis tenetur et. Dolorum rerum consequatur corrupti mollitia rem voluptas blanditiis. Est perferendis sint voluptatum ab. Expedita dolorem explicabo amet expedita. Impedit quis dolor est sed consequatur est.
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...