A Neumann & Associates

OCTOBER 6, 2022

Furthermore, “Those banks sold with the assistance of a transaction advisor received a 20% higher price to earnings multiple and a 15% higher price to tangible book multiple.”. For most non-banks, price to tangible book multiples are not very relevant. But price to earnings multiples are critical.

Business Valuation 52

Business Valuation Price to Earnings Banking Marketability 52

RNC

JULY 13, 2023

This approach utilizes valuation multiples, such as price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, or enterprise value-to-EBITDA (EV/EBITDA) ratio, to estimate the value of the business. It provides insights into the market perception of similar businesses and helps establish a fair valuation.

Business Valuation 52

Business Valuation Intangible Assets EBITDA Fair Market Value 52

Equilest

AUGUST 3, 2023

Earnings Multiples Earnings multiples, such as price-to-earnings (P/E) ratio and price-to-sales (P/S) ratio, are commonly applied in valuing businesses. This method calculates the business's value by subtracting its liabilities from the total value of its tangible and intangible assets.

Business Valuation 40

Business Valuation Discounted Cash Flow Intangible Assets Price to Earnings 40

Equilest

MAY 21, 2023

Valuation Methods for HVAC Companies Explain the different methods used to value HVAC companies, including earnings multiples, comparable company analysis, and discounted cash flow (DCF) analysis. A higher market share often translates to a higher valuation. What are the typical valuation multiples used in the HVAC industry?

Discounted Cash Flow 40

Discounted Cash Flow Business Valuation Comparable Company Analysis Price to Earnings 40

Equilest

MAY 21, 2023

Valuation Methods for HVAC Companies Explain the different methods used to value HVAC companies, including earnings multiples, comparable company analysis, and discounted cash flow (DCF) analysis. A higher market share often translates to a higher valuation. What are the typical valuation multiples used in the HVAC industry?

Discounted Cash Flow 40

Discounted Cash Flow Business Valuation Comparable Company Analysis Price to Earnings 40

Equilest

NOVEMBER 8, 2023

Valuation Methods H1: The Earnings Multiplier Method The Earnings Multiplier Method, also known as the Price-to-Earnings (P/E) ratio, is a popular choice for valuing Glass and Glazing Companies. To apply this method, you calculate the company's annual earnings and then apply a multiplier to estimate its value.

Discounted Cash Flow 40

Discounted Cash Flow Business Valuation Earnings Multiplier Intangible Assets 40

Valutico

AUGUST 10, 2023

A common method is to use the company’s Price-to-Earnings Ratio (PER), but it can be challenging for SMEs due to the absence of a market. To solve this, approximations are used, and an illiquidity premium is added to the rate to account for the lack of market for SME shares. Why Are SME Valuations So Unique and Challenging?

Discounted Cash Flow 52

Discounted Cash Flow Asset-based Approach Business Valuation Intangible Assets 52

Valutico

AUGUST 23, 2023

b) Gathering Financial Data: Collecting financial information, such as revenue, earnings, and valuation multiples, for the comparable companies. In contrast, using the average P/E ratio of 30x for Apple and its earnings of $50 billion would result in an estimated valuation of $1.5

Discounted Cash Flow 52

Discounted Cash Flow EBITDA Comparable Company Analysis Asset-based Approach 52

Valutico

AUGUST 10, 2023

b) Gathering Financial Data: Collecting financial information, such as revenue, earnings, and valuation multiples, for the comparable companies. In contrast, using the average P/E ratio of 30x for Apple and its earnings of $50 billion would result in an estimated valuation of $1.5

Discounted Cash Flow 52

Discounted Cash Flow EBITDA Comparable Company Analysis Asset-based Approach 52

Equilest

AUGUST 28, 2023

Key financial metrics, such as price-to-earnings ratio and enterprise value-to-EBITDA, are used to assess the relative valuation. Comparable Company Analysis Comparable company analysis involves comparing the holding company to similar publicly traded companies within the same industry.

Discounted Cash Flow 40

Discounted Cash Flow Comparable Company Analysis Intangible Assets Business Valuation 40

Equilest

MARCH 27, 2023

These methods include: Price-to-earnings ratio (P/E ratio) Discounted cash flow (DCF) Comparable company analysis (CCA) Each of these methods has its advantages and limitations, and they should be used in combination to get a comprehensive picture of a company's value.

EBITDA 40

EBITDA Discounted Cash Flow Comparable Company Analysis Price to Earnings 40

Equilest

JULY 10, 2023

Ratios such as price-to-earnings (P/E), price-to-sales (P/S), and return on investment (ROI) help compare the company's financial performance to industry benchmarks. These ratios provide valuable insights into the company's relative valuation and profitability.

Business Valuation 40

Business Valuation Asset-based Approach Risk Premium Price to Earnings 40

Equilest

JULY 10, 2023

Ratios such as price-to-earnings (P/E), price-to-sales (P/S), and return on investment (ROI) help compare the company's financial performance to industry benchmarks. These ratios provide valuable insights into the company's relative valuation and profitability.

Business Valuation 40

Business Valuation Asset-based Approach Risk Premium Price to Earnings 40

Valutico

SEPTEMBER 13, 2023

A common method is to use the company’s Price-to-Earnings Ratio (PER), but it can be challenging for SMEs due to the absence of a market. To solve this, approximations are used, and an illiquidity premium is added to the rate to account for the lack of market for SME shares.

Discounted Cash Flow 52

Discounted Cash Flow Intangible Assets Asset-based Approach Comparable Company Analysis 52

Andrew Stolz

APRIL 3, 2020

The concept of an LBO transaction is simple – private equity buys a company, fixes it up, repays its debt and then sells the company for a higher price to earn the profit. The acquisition transaction value was around US$ 43.8

Private Equity Firm 52

Private Equity Firm EBITDA Equity Finance 52

Equilest

MAY 29, 2023

Consequently, businesses with substantial retained earnings are often perceived as more valuable and attractive to investors. There are various methods used to evaluate the impact of retained earnings on business valuation. These include discounted cash flow (DCF) analysis, price-to-earnings (P/E) ratios, and comparables analysis.

Business Valuation 40

Business Valuation Dividends Discounted Cash Flow Price to Earnings 40

Equilest

MAY 24, 2023

The Comparable Company Analysis (CCA) compares key financial ratios and multiples, such as price-to-earnings (P/E) ratio or enterprise value-to-sales (EV/S) ratio, of similar publicly traded companies. Asset-Based Valuation Asset-based valuation methods assess the value of a business based on its net assets.

Business Valuation 40

Business Valuation Discounted Cash Flow Comparable Company Analysis Intangible Assets 40

Musings on Markets

JULY 1, 2022

Not only has the implied ERP surged to 6.43% on June 23, 2022, from 4.24% on January 1, 2022, but stocks are now being priced to earn 9.45% annually, up from the 5.75% at the start of the year.

Risk Premium 96

Risk Premium Marketability Equity Treasury 96

Class VI Partner

JULY 28, 2021

Multiple of Earnings Multiple of Earnings, similar to Multiple of EBITDA, refers to the multiple of a company’s earnings to establish the entity valuation of the company.

Equity 52

Equity EBITDA Book Value Fair Market Value 52

Equilest

MARCH 17, 2022

This multiple is similar, by analogy, to the PER (Price to Earnings Ratio of listed companies). For example, a requested rate of return of 20% per year is equivalent to a multiple of 5 (1/20% = 5). EV = Result x Multiple. The table below shows the link between the expected annual rate of return in perpetuity and a multiple: .

Business Valuation 40

Business Valuation EBIT EBITDA Discounted Cash Flow 40