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Valutico is one software platform where it’s possible to access these multiples ( book a demo to learn more ). The first is comparable company analysis (CCA), also known as “comps”. The second is precedenttransactionanalysis, known as “precedents” and also called a comparable transactionanalysis (CTA).
Valutico is one software platform where it’s possible to access these multiples ( book a demo to learn more ). The first is comparable company analysis (CCA), also known as “comps”. The second is precedenttransactionanalysis, known as “precedents” and also called a comparable transactionanalysis (CTA).
This is accomplished through methods like Comparable Company Analysis, PrecedentTransactionAnalysis, and Market Capitalization, which collectively offer insights into the company’s value within the context of the broader market landscape. A lower EV/EBIT ratio indicates a potentially better value for investors.
Its calculation involves the subtraction of capital expenditures, changes in working capital, and taxes from the company's Earnings Before Interest and Taxes (EBIT). Common multiples used in this comparative analysis include EV to EBIT, Price to Cash Flow, and PE Ratio. What is PrecedentTransactionalAnalysis?
With the comparable transactions method, you are looking for comparable metrics, usually multiples of earnings or revenue. That is, were the companies in those transactions valued as a multiple of EBIT , EBITDA , revenue, or some other parameter? It is important to identify the key valuation parameter for each deal.
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