Multiples Valuation

Course Overview

Multiples valuation is an intuitive, easy-to-understand framework that helps investment bankers, investment analysts, and finance professionals value companies. Sometimes multiples are used to obtain a quick proxy of a firm’s value based on its earnings. In other situations performing multiples valuation requires complex intellectual work that considers several subtleties, including suitable peers and adjustments for non-operating and non-recurring items. In this Multiples Valuation course, theory and practice go hand in hand. We introduce the concept of relative valuation and its basic assumptions. Then you’ll learn about the different valuation multiples, including the difference between trading and transactional multiples. Moreover, the theoretical lessons cover some fundamental principles an analyst needs to remember to ensure their work respects valuation best practices. In the second part of the course, we analyze a practical example of multiples valuation. You'll see that multiples require more time and can be hard to compute if done correctly and with great precision. In this case, there is a clear trade-off between valuation precision and time invested in research. Multiples valuation is often used in conjunction with Discounted Cash Flow. It’s considered a best practice when the valuation results from both techniques are triangulated to determine a reasonable price range. Our Multiples Valuation course is perfect for aspiring investment bankers, investment analysts, and professionals who are already on the job and want to upskill. Start learning today to acquire these invaluable career-enhancing skills. See you on the inside!