Valuation: Comps & Precedents
You have EV/EBITDA, EV/Revenue, and P/E for the set and they imply different valuations. How do you reconcile them?
Model answer
Don't average them blindly. Weight toward the multiple most appropriate for the business: EV/EBITDA for a profitable mature company; EV/Revenue if EBITDA is negative/volatile or for early-stage…
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