how to project equity value
Hi ;)
I am trying to build a trading comps model from scratch and I was wondering what is the methodology to calculate the Enterprise value in, say , 2 years?
Can I find projection of the Market cap in Equity research?
thanks
My question would be more : How do we calculate a forward-looking multiple? ( either EV multiple or EqV multiple)
I think you are probably misunderstanding something about trading comps, and that is that the numerator (equity value, share price, enterprise value) doesn't change and isn't projected. Comps show today's value as a multiple of future earnings/ cash flow, not future value as a multiple of future earnings/cash flow.
Stop and think for a second about projecting equity value a year or two out. If there was a straightforward and reliable way of doing this, about 90% of all people who work in finance would be unemployed.
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