Comparable Company Valuation

What a multiple is, and the four-step discipline

A multiple is a price divided by a standardising variable, and it is only a number until you know what drives it. The four steps: define the multiple consistently, describe how it is distributed across the market, analyse what determines it, and only then apply it to a peer set. The peer set is a choice, and every name in it should be defensible on growth, risk and cash-flow grounds rather than on the industry code.

Full session (about fifteen minutes)