Asset manager valuation: P/E, EV/EBITDA and DCF
Forward multiples against peers, and the fee stream.
By Surojit Chakraverti, founder of L3VLUP and an investor running a long-short healthcare and technology equities strategy.
On this subject: asset manager valuation: p/e, ev/ebitda and dcf.Updated 30 October 2026
What it does
Three ways to value a manager, each with its own question. A forward P/E against a peer range asks what the market pays for a dollar of earnings like these. EV/EBITDA does the same before the capital structure, with cash and seed investments added in the bridge. A DCF of the fee stream, operating income after tax plus depreciation less capital spending, works because the business needs little capital; it says what the earnings are worth if the forecast is right.
Where it lives
The same schedule in each model that carries it, with the rows to open. Open a model in the browser, go to the sheet, and click the lines.
- Assumptions, rows 76–85: Peer P/E, low, Peer P/E, mid, Peer P/E, high, Peer EV/EBITDA, low…
- Valuation, rows 6–9: Forward EPS, Value per share at the low P/E, Value per share at the mid P/E, Value per share at the high P/E
- Valuation, rows 12–16: Forward EBITDA, Plus cash and seed investments, FY0A, Value per share at the low multiple, Value per share at the mid multiple…
- Valuation, rows 19–36: Discount rate: cost of equity, Operating income, Less tax on operating income, Add depreciation and amortisation…
What a reviewer looks for
- A P/E applied to earnings that include a year of unusually high performance fees.
- Seed investments left out of the bridge.
- A terminal growth rate above the market’s, for a business losing fee rate every year.
Learn it, then build it
Build · Lab · ~12 min
WACC Builder
Build a discount rate you can defend line by line: beta, equity risk premium and cost of debt, each from a source you can name.
Build · Lab · ~15 min
DCF Builder
Build a DCF by hand from revenue to a share price, know how much of it sits in the terminal value, and name the one assumption the answer hinges on.
Build · Lab · ~3 min
Name That Multiple
Place a business in the right EV/EBITDA band from its quality alone, and say what drives it.
Read · Guide · 16 min
How to Build a DCF Model: From Operating Assumptions to a Defensible Valuation
Read · Guide · 7 min
Enterprise Value vs. Equity Value, Once and For All
Vocabulary: Free Cash Flow (FCF), Terminal Value, Enterprise Value (EV).