I'm trying to do a comparable companies analysis for a company in the industrial sector and was wondering what ratios/metrics I should be using for companies in this industry and why.
So far, I've decided to use: EV/EBITDA EV/Revenue FCF/Share FCF Yield Dividend Yield P/E Debt/EBITDA
Am I right to be using these ratios or should some be altered/added/removed?
Thanks in advance.
| +203 | Return Rates For Interns Are Falling? | 83 | 2h |
| +128 | UBS Americas IB: The Kids’ Table of Wall Street | 16 | 1d |
| +102 | I am a drunk MD AMA | 38 | 4h |
| +76 | London IB BB is a challenge | 41 | 22h |
| +75 | KISSED MY VP… HELP!!! | 14 | 9h |
| +63 | VP Lifestyle at Top BB Coverage Groups | 40 | 12h |
| +57 | An Outsider’s View of RX Banking Out of College | 6 | 3d |
| +49 | SharePoint makes IB hours HELL | 15 | 3d |
| +48 | UBS Offer Day | 18 | 10h |
| +44 | momentum of Rx groups | 16 | 17h |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
Why would you need 7 different comp co valuations?
Typically your compco valuation should be using only 1 type of multiple. I've seen other multiples (TEV/Rev) just for reference, but it rarely drives the valuation itself.
Also metrics vary depending on industry. For different reasons, some metrics are more appropriate than others in a given industry. For example in a FIG deal you wont see an EBITDA multiple, it'll probably be a Price/Book multiple of some sort.
If you don't know what you should be using, check out a few equity research reports for a few of the comps and see what analysts are using to value the company.
For an industrial, TEV/EBITDA should suffice.
Expedita excepturi nobis consequuntur doloremque harum quos quo. Nihil non totam rerum repellendus. Est nobis qui illo quibusdam. Sunt quos vel reprehenderit rerum qui hic voluptatum.
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...