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EV/EBITDA Multiples by industry
Hi guys, I bumped into this table from Damodaran: https://pages.stern.nyu.edu/~adamodar/New_Home_Pa… about EV/EBITDA multiple. The way I see it, a sector should trade at higher multiples because of its growth prospects, investor sentiment and safety. Then, I don't understand why Retail (groceries...
Your "GO-TO" multiples
Hello to all, I am valuing several young start-up and distressed companies. What are your go-to multiples for money losing companies?
Regression analysis for determination of correct multiple
Hi, I am looking for a simple idea how to decide between two valuations multiple using regression techniques, i.e. the outcome will tell me that e.g. EV / EBITDA multiple is more suitable than EV /FCFF for companies in that specific industry (defined by sample). I know that the choice of right...
Comparable Company Analysis
How's it going, I was assigned to do a comparable company analysis for homework. However, I'm not sure if I did it correctly. The instructions were very vague so I had to do research and do the best(?) I can. This is the first time I attempt doing this, so I am looking for your opinions,...
Control Premiums and Minority Discounts Using Multiples
Hi there, I'm currently writing a paper about how to apply control premiums and minority discounts in terms of multiple valuation. My focus is to valuate a private company with publicly traded comparable companies. So during my research I came across some questions: Given the following value basis:...
Alternative Industry Valuation for Competitors w/ Lots of Debt and Inconsistent EPS
Hello, My goal is to get a price per share for a private company using industry multiples. The problem is: (1) most competitors have large amounts of debt (>60% of the company EV ) making it so changes in stock price has little effect in EV / EBITDA multiples and (2) most competitors have...
How to determine your walk away price using multiples
From my understanding transaction multiples give you the price range you'd probably have to pay to acquire the target However how do you determine the absolute top value that you'd pay for a firm i.e. the value of the firm including synergies? I am aware that you can use the DCF , but is it possible...
Calculating P/E - Does minority interest matter?
I see P/E calculated both as share price/EPS and market cap/net income. However, the first method implies minority interest is not included in earnings and the latter... well, maybe I've just run across a lot of people with lazy models, but a lot of time the NI number being used is the headline...
I have Equity Research and IR/Business Dev transfer opportunities: Both require modeling aptitude
Long story short: I am building from scratch an operational model/equity valuation model for both an integrated energy company and a power company (non-regulated, non-utility). I have no prior experience, and have hit a number of road blocks (standardizing historical financials | assumptions behind...
Price Multiples- Internet/Tech Companies
Hello, I have performed a relative/comparable valuation on an Internet/Tech company, however, I am struggling to find appropriate insight as to which price multiples one should specifically use when calculating these multiples. I know the predominantly internet/tech companies have negative earnings,...
Insurance Industry Multiples
Anyone know what multiples are popular for valuation of insurers, specifically conglomerate-types (i.e. Allstate, State Farm, etc.)? Wasn't sure if P/BV or P/TBV were favored over EV / EBITDA or any other metrics. Thanks in advance.
Multiple Valuation Question
Ok so I have a question re: EV / EBITDA vs EV /Sales. I'm trying to value a hypothetical purse manufacturer and using KORS as a comp. My companies revenue is 22.7mm with 10.3mm ebitda for a 45.37% margin. KORS is 1.3bb revenue with 289.03mm ebitda for a 22.23% margin. KORS EV /Sales = 6.43x -->...
Valuation Multiples
According to the M&I guide, you are likely to use the EV /EBIT multiple for companies in industries where D&A is large. The multiple will be sensitive to D&A. Then why would a good industry-specific multiple for Retail be EV /EBITDAR (R = Rent)? Also according to the M&I guide, it says Rent is a...
Steel Industry specific multiples
Hi I am new to the WSO . I am sorry if this is not the correct forum to post this question in or if this has been answered in previous threads. I am doing an assignment that requires a relative valuation of a steel company and I was looking for some help on industry specific multiples. Currently I...
Steel Industry specific multiples
Hi I am new to the WSO . I am sorry if this is not the correct forum to post this question in or if this has been answered in previous threads. I am doing an assignment that requires a relative valuation of a steel company and I was looking for some help on industry specific multiples. Currently I...
Historical EV/EBITDA Multiples
Hello, How would you compute historical EV / EBITDA multiples for a listed company in order to compare them with the actual multiple? Let's say the current date is 31 Dec. 2011, the company fiscal year ends on 31 Dec., hence to compute the actual 2011 multiple I use the market capitalization and...
Revenue multiples in retail sector coverage investment banking
Hi, I am wondering if anyone can explain why revenue multiples (Price/Sales & EV /Sales) are particularly important to retail sector. Some people say that sales are important to retail sector but I guess sales are important everywhere. Also, is it ok to use Price/Sales multiple despite internal...
Best resource for lower-middle market comparable analyses
I am looking for the best resource for information and multiples on lower- middle market precedent transactions . Specifically, multiples on deals that do not publicize the terms of the deal through a press release. Thanks in advance for the guidance.
Question for FIG Bankers
Hey gang, long time reader first time poster. Thought I would ask a quick question for anyone out there that has run a comp set in Cap IQ regarding Investment banks. Is there a preferred multiple rather than EV / EBITDA or EV /Revenue for banks? Cap IQ doesn't break out bank EV or EBITDA for that...
What determines what multiple an industry trades off of?
I know we all are told that this industry trades off of FV/ EBITDA multiples or that one trades off of P/E multiples...but what actually determines what the appropriate valuation multiple(s) for an industry are. Why do certain industries trade primarily off of this or that multiple as opposed to...
Valuation Question-Comparable Multiples
Hi guys, I had a question on comparable multiples. You are trying to value a stock or company and are using comparable company multiples. The company (Company X) is special in its sector where no other company is really similar to it. (ex google). You come up with a list of lets say 5 companies in...
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