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
| +433 | Is UBS really that bad? | 77 | 8h |
| +265 | Investment Banking is Divine | 40 | 2d |
| +219 | Another $115bn Mega deal for these banks. Congrats! | 46 | 14h |
| +216 | US 2027 SA IB worried about background check | 53 | 2d |
| +74 | Useless associates | 14 | 4h |
| +66 | Which Offer to Accept: UBS Analyst Role or Part Time Cashier at the Local Taco Bell | 18 | 1h |
| +60 | Roku-Fox Deal - UBS Misses Out on yet another deals after years chasing this deal | 10 | 1h |
| +52 | Differences in Restructuring Teams? | 24 | 10h |
| +44 | FIG Pigeonholes you - is it true? | 15 | 2m |
| +40 | Is Houston SA 28 recruiting already over? | 34 | 1d |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
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.
Ad ad est fugiat fuga. Rerum sed vel ratione minima consequatur vel voluptas.
Rem minima repellat suscipit quod qui accusamus. Rerum expedita id aut. Voluptas vero repellendus reiciendis vel deserunt omnis. Labore reiciendis aut sunt aut et. Fugiat cum nihil esse. Facilis iure est ea provident et eum.
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...