Multiple EV techniques for one group

Hi all

I'm looking at a group that has distribution and manufacturing as separate companies.

I'm inclined to use 2 different ways of valuing each company.

Distribution company has stock and a high level of IP advances, looking to at a multiple of an average EBITDA for the past 3 years along with future EBITDA to take the unrecouped advances into account. For the Manufacturing business I would use DCF for the coming 5 years.

Should I be thinking of any other EV techniques?

Cheers

2 Comments
 

Bonzai88, sorry about the lack of response. Maybe one of these topics will help:

  • How Tax Rate affects Enterprise Value (EV) insight in advance. enterprise value EV dcf FCF Valuation ... using multiple, comps, or previous transactions? What are your thoughts in general? Thanks for your ... street: how tax rate affects EV valuation of companies. Some people argue it's positively correlated ...
  • P/E vs. EV/EBITDA- Advantages/Disadvantages? Multiple (EV /EBITDA) Enterprise Value / EBITDA is a metric that looks at the companies wholistic worth ... that means that an investor is willing to pay $70 for every $1 of earnings. Enterprise Value to EBITDA ... relative to a proxy for cash flow that is available to all investors. Enterprise Value is calcuated by ...
  • Why does a Low EV/EBITDA Multiple Make a Good Acquisition Target? to rival company with higher ev /ebitda? Thanks you What is EV /EBITDA? Enterprise Value / EBITDA is ... through the operations of the business. Why is a Low Enterprise Value to EBITDA Multiple Good? As is often ... multiple is used to determine value below. Preparing for investment banking interviews? The WSO investment ...
  • Why subtract cash when we calculate Enterprise Value Why do we subtract cash when calculating enterprise value? Shouldn't we be paying for the ... answer this question lets make sure understand what enterprise value is. What is enterprise value (EV ... capitalization. Additionally, enterprise value is also used in used in standard valuation multiples such
  • Which one would have lower Enterprise Value? Which would have a lower EV: a software start-up or an industrial firm? Please explain your ...
  • post money enterprise value why is the post money EV / EBITDA multiple preferred over the pre money mulitple enterprise value ...
  • Enterprise Value and Minority Interest EV /Revenue or EV / EBITDA the Enterprise value needs to account for the value of the main company ... Minority Interest in the Enterprise Value (EV) Formula First, let's review the Enterprise Calculation. ... The calculation for Enterprise Value is: Market Capitalizatio
  • More suggestions...

No promises, but thought I'd mention a few relevant users that work in the industry: bmleeson Dobbie henchman

You're welcome.

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