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

Valutico

The first is comparable company analysis (CCA), also known as “comps”. Comparable Company Analysis’, ‘CCA’, ‘Comps’). 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

The first is comparable company analysis (CCA), also known as “comps”. Comparable Company Analysis’, ‘CCA’, ‘Comps’). 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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Discounted-Cash-Flow-Analysis: Your Complete Guide with Examples

Valutico

the multiple based or ‘ comps ’ (comparable company analysis) approach. 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.