article thumbnail

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

Valutico

Valutico is one software platform where it’s possible to access these multiples ( book a demo to learn more ). 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.

article thumbnail

Your Guide to Valuing a Company Using the Multiples Approach

Valutico

Valutico is one software platform where it’s possible to access these multiples ( book a demo to learn more ). 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.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

How to choose Comparable Companies

Valutico

When comparing financial metrics, it is advisable to focus on those that directly impact valuation multiples commonly used in CCAs, such as EV/Sales, EV/EBITDA, P/E, and EV/EBIT. Book Your Demo here. Higher profitability may indicate better operational efficiency and competitive advantage.

article thumbnail

Company Valuation Methods—Complete List and Guide

Valutico

This method is common in industries where valuations are commonly expressed as a multiple of Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) or Earnings Before Interest and Taxes (EBIT). A lower EV/EBIT ratio indicates a potentially better value for investors. Want to simplify your valuation calculations?

article thumbnail

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

Valutico

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. The CapEx, tax, and in this case non-cash working capital, are negative. .