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

Valutico

Broadly, there are two different common ways to value using multiples. . The first is comparable company analysis (CCA), also known as “comps”. Comparable Company Analysis’, ‘CCA’, ‘Comps’). The ratio is either related to the Equity Value or ratios related to the Enterprise Value. . Trading Multiples (a.k.a.

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Your Guide to Valuing a Company Using the Multiples Approach

Valutico

Broadly, there are two different common ways to value using multiples. . The first is comparable company analysis (CCA), also known as “comps”. Comparable Company Analysis’, ‘CCA’, ‘Comps’). The ratio is either related to the Equity Value or ratios related to the Enterprise Value. . Trading Multiples (a.k.a.

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29 Valuation Interview Questions and Answers: Mastering the Art of Crackling Interviews

Equilest

Its calculation involves the subtraction of capital expenditures, changes in working capital, and taxes from the company's Earnings Before Interest and Taxes (EBIT). The resulting value represents the cash available to all contributors of capital—both debt and equity. One key emphasis is on the Price to Book Value multiple.