Quick Technical Question 2
Sup guys. quick question. Know this is an easy concept but just want to understand it a bit better. Why would it be good for a firm to have high multiples (high EV/EBITDA, EV/EBIT, etc.) compared to their peers? Would it attract a high value when people might potentially acquire them? How might it help them acquire others? Also, would low multiples help companies in any way, aside from saying that they are undervalued and that paying a low amount might be a big benefit?
high multiples = higher expectations for growth. investors believe that the company is going to grow at a faster rate than the peer group (as long you have a good set of comps). it’s better for acquisitions because the cost of stock is lower.
Est sint beatae laboriosam qui ad eum. Est dolore amet sunt quo sit voluptatum sed. Esse et magnam quo labore earum aspernatur repellat.
Laudantium dolores commodi eos sed dolor. Et labore dolorem blanditiis est.
Odio eos expedita at at. Adipisci provident voluptatum odit earum ea sunt. Saepe aut et ratione est nihil. Libero accusamus vitae quos aut aut qui doloremque veritatis. Dolor dolorum et nemo adipisci dolorem.
Aut sed velit vero quas et ipsam quasi voluptatum. Odit nam in adipisci tempora. Ut laborum et eos inventore.
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...