Question: In this module, we will discuss the process by which we can construct a valuation utilizing market multiples.Start w/ a quick overview of the definition
In this module, we will discuss the process by which we can construct a valuation utilizing market multiples.Start w/ a quick overview of the definition of a market multiple and/or comparable.Then, cross examine discounted cash flow analysis w/ a multiples-based valuation.We can use a multiple to value a stable firm, to obtain the terminal value is a discounted cash flow analysis (versus using a perpetuity-based formula), and to solve for an organization's enterprise value.
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