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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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Company Valuation Methods—Complete List and Guide

Valutico

The income-based approach determines a company’s value by assessing its anticipated future income-generating potential, employing methodologies such as Discounted Cash Flow (DCF) Analysis, Capitalization of Earnings, the Income Multiplier Method, Dividend Discount Model (DDM), and Earnings-Based Valuation.

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

Equilest

Uncover the intricacies of financial modeling, from understanding fundamental concepts like Free Cash Flow to Firm and Dividend Discount Model, to navigating advanced methodologies such as LBO and DCF. It provides a clearer picture of a company's ability to reward its shareholders with dividends or share buybacks.