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Valuation using multiples

In economics, valuation using multiples, or "relative valuation", is a process that consists of:

Companies, Valuation multiples & Overview

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Valuation multiples

8 related topics

Overview

16 related topics

Example (discounted forward PE ratio method)

2 related topics

Peer group

1 related topics

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Overview

Valuation multiples

Peer group

Advantages/disadvantages of multiples

Example (discounted forward PE ratio method)

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Valuation using multiples

Nodes34
Edges33
Triples9
Avg. degree1.94
Density0.058824
Components1

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Valuation using multiples

Top relations

related to Process data diagram · 3
Valuation using multiples → All, The, Using

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Important terminology

multiples value company valuation peer companies market based used group relative example comparable ratio business analysis earnings use viruscontrol cash

Entity relationships Subject–Predicate–Object triples

SubjectPredicateObjectConfidenceSrc
those obtained from discounted cash flow valuationsinstance ofnot absolute values0.80text
discounted cash flow valuation or EVAinstance ofmore 'precise' approaches0.80text
which can create a false sense of comfort.Relevanceinstance ofmore 'precise' approaches0.80text
EV/EBITDA are also a useful complements to valuations of minority interestsinstance ofCertain multiples0.80text
especially when the P/E ratio is difficult to interpret because of significant differences in capital structuresinstance ofCertain multiples0.80text
in accounting policies or in cases where net earnings are negative or lowinstance ofCertain multiples0.80text
Valuation using multiplesrelated to Process data diagramThe0.60section
Valuation using multiplesrelated to Process data diagramAll0.60section
Valuation using multiplesrelated to Process data diagramUsing0.60section

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