Valuation: Comps & Precedents
What is 'mid-cycle' or normalized EBITDA, and why do you need it when running comps on a cyclical company?
Model answer
Mid-cycle EBITDA is an estimate of what the company earns in an average year across a full economic cycle - neither peak nor trough. You need it for cyclicals (steel, chemicals, autos, semis,…
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