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24 July, 13:40

Valuation using market multiples is popular because it simply multiplies a market multiple by what variable to determine value?

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  1. 24 July, 14:04
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    The multiples approach is a valuation theory based on the idea that similar assets sell at similar prices. It assumes that a ratio comparing value to a firm-specific variable like Price/Earnings (P/E), Price/Sales (P/S), Price/Book Value (P/BV) etc.

    Explanation:

    The variable to determine value will change according to the industry.
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