Valuation Methods in Industrial IBD group
Hi all,
I am curious if anyone is aware of the common valuation multiples and methods common when valuing companies as an analyst within a bank's industrials group. Any info would be greatly appreciated. thx
There is only one right answer. I'm going to let you figure it out and give you a hint.
Hint: It is the most common method for valuation in IB models.
DCF?
Sorry, was referring to multiples question. It is a basic industry, no special metrics needed.
Methods are your typical valuation methods. Nobody uses basic DCF in the real world. LBO, comps.
Infrastructure may be the one exception, although there it's a case of modeling the cash flows and getting an IRR and cash yield rather than coming up with a discount rate. Otherwise, I agree. I haven't seen a DCF-style valuation outside of an infrastructure deal for years.
Bullet-Tooth Tony and SSits, thx I appreciate the insight
EV / accidents per year
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