Of Course, Enterprise Value = EBITDA x the Multiple… Uh, So What’s the Multiple?

A business’ value is generally based on the present value of expected future cash flows. Unfortunately, forecasting these cash flow streams can be difficult. The most common method of valuation, the Market Approach, derives a business’s value by looking at transactions for businesses within the same industry that are of similar size and operational characteristics. In theory, this is similar to how you might value your house, except that there are a lot more variables and comparable data is not readily available.


The full article is available to our Member-Scholars. Please login or register to view.


​Not a member-scholar yet? Join our financial community here!

Identify your path to CFO success by taking our CFO Readiness Assessmentᵀᴹ.

For the most up to date and relevant accounting, finance, treasury and leadership headlines all in one place subscribe to The Balanced Digest.

Follow us on Linkedin, Facebook, Twitter.