Musings on Markets

MAY 20, 2022

Inflation and Value When in doubt about how any action or information plays out in value, I find it useful to go back to value basics, and trace out the effects of that action/information on value drivers.

Price to Book 102

Price to Book Dividends Beta Equity 102

Peak Business Valuation

SEPTEMBER 23, 2023

To find the proper multiples for a consulting firm, business appraisers use the applicable NAICS or SIC code. Below, we discuss the basics of SDE , EBITDA, and REV multiples for a consulting firm. This involves multiplying the consulting firm’s SDE by the multiple. SDE multiples are common when valuing a consulting firm.

Discounted Cash Flow 52

Discounted Cash Flow Business Valuation Appraisal EBITDA 52

Peak Business Valuation

FEBRUARY 13, 2023

Market Multiples for an Engineering Firm Valuation experts use multiples when determining the value of an engineering firm. Below, we list average valuation multiples for an engineering firm. However, a business appraiser uses various methods and multiples when valuing an engineering firm.

Business Valuation 52

Business Valuation Fair Market Value Appraisal EBITDA 52

Peak Business Valuation

OCTOBER 4, 2023

SDE (Seller’s Discretionary Earnings) Multiples for an IT Consulting Firm SDE multiples determine the value of an IT consulting firm based on its seller’s discretionary earnings. This multiple is common when valuing an IT consulting firm.

Discounted Cash Flow 52

Discounted Cash Flow Business Valuation Fair Market Value Appraisal 52

Peak Business Valuation

SEPTEMBER 17, 2023

SDE (Seller’s Discretionary Earnings) Multiple for an Engineering Firm The SDE multiple is popular when valuing an engineering firm. Business appraisers apply the SDE multiple to the seller’s discretionary earnings of an engineering firm to determine its value.

Discounted Cash Flow 40

Discounted Cash Flow Business Valuation Appraisal Fair Market Value 40

Peak Business Valuation

SEPTEMBER 13, 2023

Business appraisers commonly use valuation multiples when valuing a property management firm. SDE Multiple Average Range: 2.53x – 3.03x EBITDA Multiple Average Range: 3.79x – 4.19x REVENUE Multiple Average Range: 0.51x – 0.94x **Disclaimer: These multiples are for educational purposes only.

Business Valuation 52

Business Valuation Appraisal Fair Market Value EBITDA 52

Peak Business Valuation

JUNE 21, 2023

Valuation multiples help experts understand how your consulting firm compares to industry averages. At Peak Business Valuation , a business appraiser uses multiples when valuing a consulting firm. As such, the information provided does not constitute valuation advice.

Business Valuation 52

Business Valuation Appraisal Fair Market Value Marketability 52

Musings on Markets

JANUARY 6, 2023

Thus, without a sense of what comprises a high or low profit margin for a firm, or what the cost of capital is for the typical company, it is easy to create "fairy tale" valuations and analyses. EV/EBIT and EV/EBITDA 4. Standard deviations in equity and firm value 4. Debt ratios (Debt to capital, Debt to EBITDA) 1.

Risk Premium 52

Risk Premium Dividends Start-ups EBITDA 52

Valutico

AUGUST 17, 2022

As some recent start-up valuations are falling amidst investor caution, this new development comes at an opportune time to positively impact how effectively financial firms value young businesses. Did Valutico invent this method?

Start-ups 52

Start-ups EBIT Weighted Average Cost of Capital Discounted Cash Flow 52

Musings on Markets

JANUARY 5, 2024

Standard Deviation in Equity/Firm Value 2. Book Value Multiples 3. EBIT & EBITDA multiple s 5. Working capital needs Thus, I compute pricing multiples based on revenues (EV to Sales, Price to Sales), earnings (PE, PEG), book value (PBV, EV to Invested Capital) or cash flow proxies (EV to EBITDA).

Dividends 105

Dividends Risk Premium Equity Book Value 105

Peak Business Valuation

MARCH 21, 2025

An effective way to determine the value of your firm is through a professional business valuation. When valuing a wealth management firm, a valuation expert uses thorough methodologies to determine the firms value, strengths, weaknesses, risks, and opportunities.

Business Valuation 52

Business Valuation Fair Market Value Appraisal Firm Value 52

Peak Business Valuation

JANUARY 31, 2025

Below are the most common multiples for wealth management firms: SDE (Sellers Discretionary Earnings) Multiples SDE multiples help calculate a wealth management firms value based on the owners discretionary earnings. This multiple is ideal for small to mid-sized wealth management firms.

Discounted Cash Flow 52

Discounted Cash Flow Business Valuation Firm Value Appraisal 52

Peak Business Valuation

FEBRUARY 5, 2025

Below, we highlight the most common multiples for valuing a law firm : SDE (Sellers Discretionary Earnings) Multiples SDE multiples reflect a businesss value based on the owners discretionary earnings. This is a popular valuation multiple for small to mid-sized law firms.

Discounted Cash Flow 52

Discounted Cash Flow Business Valuation Fair Market Value Appraisal 52

Musings on Markets

JANUARY 10, 2025

Standard Deviation in Equity/Firm Value 2. Book Value Multiples 3. EBIT & EBITDA multiple s 5. Since I update the data only once a year, it will age as we go through 2025, but that aging will be most felt, if you use my pricing multiples (PE, PBV, EV to EBITDA etc.) Fundamental Growth in Equity Earnings 2.

Risk Premium 115

Risk Premium Dividends Start-ups Corporate Finance 115

Musings on Markets

FEBRUARY 6, 2025

The third pricing metric I look at is the enterprise value to EBITDA , a multiple that has gone from being lightly used four decades ago to a banking punchline today, where EBITDA represents a rough measure of operating cash flow).

Risk Premium 67

Risk Premium Start-ups Enterprise Value Equity 67