Multiples valuation: Difference between revisions
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imported>Administrator (CSV import) |
imported>Doug Williamson m (Spacing 22/8/13) |
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The most widely used financial measure for this purpose for a mature business is accounting earnings. | The most widely used financial measure for this purpose for a mature business is accounting earnings. | ||
For other types of businesses, relevant measures might include - for example - turnover, or numbers of subscribers. | For other types of businesses, relevant measures might include - for example - turnover, or numbers of subscribers. | ||
== See also == | == See also == | ||
* [[Earnings]] | * [[Earnings]] | ||
* [[Price to earnings ratio]] | * [[Price to earnings ratio]] | ||
Revision as of 08:18, 22 August 2013
A method of business valuation which is based on a relevant measure and the ratio of value to that measure for a comparable business (or a comparable group of businesses).
The most widely used financial measure for this purpose for a mature business is accounting earnings.
For other types of businesses, relevant measures might include - for example - turnover, or numbers of subscribers.