You are trying to find the value of the network of Sam's Clubs stores and you are
Fantastic news! We've Found the answer you've been seeking!
Question:
You are trying to find the value of the network of Sam's Clubs stores and you are considering using Costco as a comparable. You must choose from a variety of available multiples.
For example, you might use a sales multiple, an EBITDA multiple, or a Value/Store multiple. Think about what type of multiple might prove best or most accurate:
1) Under what circumstances might a firm value/store ratio taken from Costco's firm value relative to its number of stores provide an accurate valuation of Sam's Clubs?
2) Under what circumstances might an EBITDA multiple provide a more accurate answer?
3) In general, how do you choose which multiple is best?
Related Book For
Real Estate Finance and Investments
ISBN: 978-0073377339
14th edition
Authors: William Brueggeman, Jeffrey Fisher
Posted Date: