Technical Interview Q: 2 Companies, Similar Financials / Business --> Different Valuations?

Hi all,

Been asked a similar question from several interviews and I don't think I've ever hit the nail on the head for this technical question.

If two companies have similar financials and business models, why would they have different valuation multiples? Would appreciate any insight on this! Thanks.

4 Comments
 

Reputation in their respective sectors, leadership in management, and key catalysts coming up are ones I can think of

 

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