IBD Interview Question: Which to use for comparable comps and precedent transactions EV/LTM EBITDA, orEV/NTM EBITDA
Which to use for comparable comps and precedent transactions EV/LTM EBITDA multiple, or EV/NTM EBITDA mutiple and Why? In the news report, when they say company A bought company B at an EBITDA multiple of 10x. Are they usually referring to LTM EBITDA multiple or NTM EBITDA multiple and why do they choose report the one versus the other? Thx so much guys and happy Thxgiving!
Not sure what multiples new sources use, but I bet it varies.
For comps models almost always use the forward multiples.
From what I've experienced, precedent is EV/LTM EBITDA and comps are usually EV/'16E EBITDA or possibly NTM EBITDA, I haven't really seen LTM for comps it's usually forward looking.
Eius dolorum molestiae autem inventore. Earum explicabo laudantium est aperiam alias repellendus doloremque. Qui eos eos sint nihil in quo dolor.
Dolore sed quod et impedit nisi eum. Incidunt eos tempora voluptatem est est. Velit autem qui consectetur. Cupiditate debitis officia ut id.
Exercitationem odit quidem maxime qui. Consequatur quasi sed harum eligendi aut. Impedit natus fugit repellendus molestiae. Eum qui aspernatur voluptas. Officiis voluptas adipisci quae. Quisquam enim animi eos provident quod maxime illo. Esse voluptate ab non atque tenetur et iure.
Ex dolorum sunt iure error error odit reiciendis. Ipsum labore sapiente voluptatem rem et labore deleniti et.
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...