what is the difference between Public comps and transaction comps?
what is the difference between Public comps and transaction comps?
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Public comps are the multiples your comp set is currently trading at (EV/ 2008E EBITDA, EBIT, etc)
Transaction comps are the multiples companies were acquired at in the past.
What does EV/2008E mean? (I assume EV is enterprise value, and has something to do with 2008)?
2008 expected (projected) earnings, usually EBITDA or EBIT
The biggest difference between the two is the control premium paid.
The "/" represents division. Divide your enterprise value by your EBITDA number (whether it be LTM EBITDA, 2008E (expected), etc). This gives you a multiple. Then, using the multiple and a little bit of algebra, calculate your own company's enterprise value.
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