Remove Comps Remove EBITDA Remove Market Risk
article thumbnail

The Role of Industry Assignment in Business Valuation: A Comprehensive Guide

Equilest

By associating a business with the right industry, evaluators can apply industry-specific benchmarks, market trends, and valuation multiples, ensuring a more accurate assessment of the company’s worth. Comps provide real-world data to anchor valuation models, ensuring that businesses are evaluated against appropriate industry standards.

article thumbnail

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

Valutico

the multiple based or ‘ comps ’ (comparable company analysis) approach. Practitioners assume the business is sold as a multiple of some financial metric like EBITDA, based on what they can see today for other businesses that were sold, and what these comparable trading multiples are. . Rf = Risk-free Rate. EV/EBITDA Multiple.