Valuation multiple time frame, which year to use?
What's the right framework to use when thinking about applying a forward multiple (eg. 1-yr forward EV/Sales, EV/EBITDA) during different times of the year?
For example, assuming we're in 2018, when you're looking at investing in a stock and you're in Q1 2018 (Jan, Feb, March), do you apply the forward multiple to 2018 sales and/or ebitda? Or should you apply to 2019E projections (eg. apply 2019E sales and/or ebitda multiple to 2019E projections)?
Relatedly, if you're evaluating a stock valuation and your current time period is Q2/Q3 2018, is it still valid to apply the forward '18 multiple or should you move on to '19E multiples?
Hope this makes sense.
Fugit nemo et itaque. Voluptatibus modi amet totam atque quaerat autem. Deserunt ea suscipit in vero quia nesciunt. Sit qui quia ut consequatur.
Nam ad sunt omnis velit at architecto. Voluptate odio sed reprehenderit omnis. Reprehenderit qui cupiditate ut unde deleniti maxime eos.
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...