Remove EBITDA Remove Enterprise Value Remove Equity Multiples Remove Marketability
article thumbnail

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

Valutico

Below, we outline what this method is, the different ways it works as well as key considerations when using this approach to value a company. What is valuation using multiples? Valuations using multiples is one of the three main approaches to valuing a business, sometimes referred to as the ‘market-based approach’.

article thumbnail

Your Guide to Valuing a Company Using the Multiples Approach

Valutico

Below, we outline what this method is, the different ways it works as well as key considerations when using this approach to value a company. What is valuation using multiples? Valuations using multiples is one of the three main approaches to valuing a business, sometimes referred to as the ‘market-based approach’.

article thumbnail

Earnings and Cash Flows: A Primer on Free Cash Flow

Musings on Markets

It is never pleasant to be in the midst of a market correction, but a market correction does operate as a cleanser for excesses that enter into even the most disciplined investors' playbooks in the good times. Pricing The final arena where free cash flows can be used is in pricing, and more specifically, in scaling market price.