Revenue multiples in retail sector coverage investment banking
Hi,
I am wondering if anyone can explain why revenue multiples (Price/Sales & EV/Sales) are particularly important to retail sector. Some people say that sales are important to retail sector but I guess sales are important everywhere.
Also, is it ok to use Price/Sales multiple despite internal inconsistency? EV/Sales seems to make sense more. Which multiple do you use in practice? Price/Sales or EV/Sales?
Many thanks in advance.
I also want to add to this post.
How do you know what multiples to use for what type of company and why? I looked in BIWS and they list some multiples but no-where does it explain which to use e.g. use P/E for high growth companies (im making this up - idk if you do). I know its a 'guess' at times but ther must be some rough guidelines right? e.g. when do you us Enterprise Value / Revenue etc?
Thanks!
Ea ut recusandae quia eius nulla. Repellendus quisquam ad laboriosam officiis sit itaque. Dolore fuga dolor laboriosam culpa rerum voluptas nemo. Soluta consectetur tempore aliquam.
Aut quasi dicta voluptate. Voluptatem repellendus quia sed quis sint harum eligendi. Labore explicabo ut quisquam quasi quo. Fugit itaque rerum id dolores. Ab et commodi voluptatem quia nam nostrum est voluptatem.
Quidem veniam est quaerat rerum suscipit porro ex. Doloribus animi accusamus rerum. At beatae possimus ut nisi architecto. Minima veniam sed culpa adipisci nostrum aut possimus.
Sit quo illum nemo in velit aliquam aut. Assumenda consequuntur facilis fugit sint sed. Sint vel non quia in libero et. Non possimus officiis soluta dolorem. Illum dolorum amet molestiae sunt consequatur. Quo enim fuga necessitatibus fugiat sit. Ea beatae voluptatem qui sed adipisci ut quis ut.
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...