Remove 2021 Remove Comps Remove EBITDA
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Sports Investment Banking: How to Win the Super Bowl and the World Cup in the Same Year

Brian DeChesare

SPAC IPOs for esports companies were “hot” for a short period in 2021, but they seem to have died off by now. My high-level summary would be: 1) Focus on Revenue Multiples – Many teams are not run efficiently and have low/negative cash flows and earnings, so revenue multiples are more common than EBITDA , P/E, or other valuation multiples.

Banking 105
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Valuation Using Multiples—What Is It and How Does It Work? Core Ideas Explained

Valutico

The ratio used might be EV/EBITDA, EV/Sales, P/E or another, depending on the valuation performed and the type of business being valued. So another major assumption when adopting this method, is that the type of ratio chosen as the comparison point, such as P/E or EV/EBITDA should be similar across similar firms. .

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Your Guide to Valuing a Company Using the Multiples Approach

Valutico

The ratio used might be EV/EBITDA, EV/Sales, P/E or another, depending on the valuation performed and the type of business being valued. So another major assumption when adopting this method, is that the type of ratio chosen as the comparison point, such as P/E or EV/EBITDA should be similar across similar firms. .

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5 Simple Sense-Checks That Vastly Improve Your Business Valuation

Valutico

A useful tip is to check for consistency between the forecast margins and historical margins—EBITDA margin, EBIT margin, and Net Income margin. Hockey stick-like growth in your DCF projections may indicate these projections are not realistic. You can find the long term inflation rate on websites like TradingEconomics.com.