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

Valutico

Valutico is one software platform where it’s possible to access these multiples ( book a demo to learn more ). An example of an enterprise multiple: EV/Sales, EV/EBITDA, EV/EBIT and practically all non-financial multiples (e.g. EV/EBIT – Indicates the ratio of the Enterprise Value and the EBIT of a company.

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Your Guide to Valuing a Company Using the Multiples Approach

Valutico

Valutico is one software platform where it’s possible to access these multiples ( book a demo to learn more ). An example of an enterprise multiple: EV/Sales, EV/EBITDA, EV/EBIT and practically all non-financial multiples (e.g. EV/EBIT – Indicates the ratio of the Enterprise Value and the EBIT of a company.

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How to choose Comparable Companies

Valutico

When comparing financial metrics, it is advisable to focus on those that directly impact valuation multiples commonly used in CCAs, such as EV/Sales, EV/EBITDA, P/E, and EV/EBIT. Book Your Demo here. Higher profitability may indicate better operational efficiency and competitive advantage.

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Company Valuation Methods—Complete List and Guide

Valutico

This method is common in industries where valuations are commonly expressed as a multiple of Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) or Earnings Before Interest and Taxes (EBIT). A lower EV/EBIT ratio indicates a potentially better value for investors. Want to simplify your valuation calculations?

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Discounted-Cash-Flow-Analysis: Your Complete Guide with Examples

Valutico

DCF WACC—similar to the above except that it calculates a different WACC in each forecast period based on a changing capital structure (D/E) and thus a changing beta in each period. Tax (from tax rate and EBIT). Non-cash working capital. The CapEx, tax, and in this case non-cash working capital, are negative. .