How do you pick a multiple in DCF terminal value calculation (multiples method)
I am preparing for the interview this week.
I know with the multiples method, you assume that a company will be sold for a certain multiple at the end of your projection period (let's say it is 5.
You take the company's projected EBITDA at Year 5. I know you would look at public comps. Do you look at the current multiples of comparable companies or do you project the 5th year's multiple for the comps?
Hope anyone could help me.
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