Valuation: Comps & Precedents
When would you value a company on EV per subscriber, and what are the pitfalls of per-unit multiples?
Model answer
Per-unit multiples - EV/subscriber for telecom, cable, streaming, or gyms, and cousins like EV/MW for power or EV/bed for hospitals - are useful when profitability is negative, distorted, or in…
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