Let’s say you are brand new to the company and want to start analyze current vs implied valuation. If a peer group is a little ambiguous but consistent across different multiples, what is the easiest way to determine what type of multiple (EV/EBITDA, EV/Sales, P/E primarily) actually drives the stock and should be used against peers in comps?

I don’t understand how you’re framing this question—I don’t see how a multiple would necessary “drive” a stock. If anything, I’d say multiples reflect, indirectly, a stock’s underlying drivers. And multiples are just shorthand so we can easily discuss and compare different names. They’re inherently imperfect, and valuation for many stocks isn’t reducible to a single multiple. But to answer your question, I think you’d have to see how others (sellside, investors) talk about the stock.

Easy Way to Determine Stock’s Trading Multiple?

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Easy Way to Determine Stock’s Trading Multiple?

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