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

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.