Valuation: Comps & Precedents
Your target has negative EBITDA. How does your approach differ if it's a cyclical at the trough versus a structurally unprofitable growth company?
Model answer
Diagnose WHY EBITDA is negative first. A cyclical at the trough has demonstrated earnings power - value it on normalized mid-cycle EBITDA with a mid-cycle multiple, and cross-check with P/B or…
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