article thumbnail

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”. From this we determine the Enterprise Value of the business. . Comparable Company Analysis’, ‘CCA’, ‘Comps’). Enterprise Multiples – Which To Use?

article thumbnail

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”. From this we determine the Enterprise Value of the business. . Comparable Company Analysis’, ‘CCA’, ‘Comps’). Enterprise Multiples – Which To Use?

Insiders

Sign Up for our Newsletter

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

article thumbnail

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. Difference between Enterprise Value and Equity Value?

article thumbnail

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

Valutico

the multiple based or ‘ comps ’ (comparable company analysis) approach. Discount the Terminal Value. . Add up all the figures you have to arrive at the Net Present Value. Depending on the exact methodology and discount rate used, this could be the Enterprise Value or Equity Value. Enterprise Value.