Valuation Using Multiples—What Is It and How Does It Work? Core Ideas Explained
Valutico
DECEMBER 15, 2022
Valuations using multiples is one of the three main approaches to valuing a business, sometimes referred to as the ‘market-based approach’. 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. This EBITDA multiple is the EV/EBITDA ratio.
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