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

Valutico

It is often divided into two main approaches – Comparable Company Analysis (CCA) and Comparable Transaction Analysis (CTA). CCA compares using companies, whereas CTA uses transactions. The first is comparable company analysis (CCA), also known as “comps”. This EBITDA multiple is the EV/EBITDA ratio.

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Your Guide to Valuing a Company Using the Multiples Approach

Valutico

It is often divided into two main approaches – Comparable Company Analysis (CCA) and Comparable Transaction Analysis (CTA). CCA compares using companies, whereas CTA uses transactions. The first is comparable company analysis (CCA), also known as “comps”. This EBITDA multiple is the EV/EBITDA ratio.

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

Equilest

EV is often used in multiples like EV/EBITDA, providing a holistic view, while Equity Value is fundamental in metrics like Price/Earnings (PE) ratio. Ranking Considerations: DCF Analysis: Valued for its detailed cash flow consideration. What is Precedent Transactional Analysis? Which is Better: PE or EV to EBITDA?