Under the market multiples approach, the value of a company is determined in reference to the value of comparable firms that have been sold within a reasonably recent period of time, with appropriate adjustments for the time value of money.

Question

Quizplus · Accepted Answer

The market multiples approach values a company based on multiples (like P/E, EV/EBITDA) of comparable publicly traded companies or recent acquisitions, without adjustments for the time value of money.

Under the Market Multiples Approach, the Value of a Company