Valuation: Comps & Precedents
Why can a multiple be 'NM' (not meaningful), and what do you do with those comps?
Model answer
A multiple is NM when the denominator is negative, near-zero, or distorted - e.g., negative EBITDA makes EV/EBITDA negative/meaningless, or a tiny/negative net income makes P/E absurdly high or…
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