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

Valutico

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’. Comparable data is based on market prices of comparable, listed companies (a so called ‘peer group’). Transaction Multiples (a.k.a.

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Your Guide to Valuing a Company Using the Multiples Approach

Valutico

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’. Comparable data is based on market prices of comparable, listed companies (a so called ‘peer group’). Transaction Multiples (a.k.a.

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Good (Bad) Banks and Good (Bad) Investments: At the right price.

Musings on Markets

While differentiating between good and bad banks can be straightforward, it does not follow that buying good banks and selling bad banks is a good investment strategy, since its success depends entirely on what the market is incorporating into stock prices.

Banking 63
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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.