Using EBITDA Multiplier for Valuation of Companies

Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F68407700%3A21630%2F17%3A00315900" target="_blank" >RIV/68407700:21630/17:00315900 - isvavai.cz</a>
Result on the web
—
DOI - Digital Object Identifier
—

Result language
angličtina
Original language name
Using EBITDA Multiplier for Valuation of Companies
Original language description
This paper focuses on an issue of corporate valuation. There are several approaches used for the valuation of companies. The methods can be based on owned property, future incomes and cash flows or market values followed by intercompany comparison. This paper will deal with the market values presented by multipliers (multiples). The approach of multipliers is especially presented by the ratio Value/EBITDA and therefore this most used and discussed multiplier is used for further analysis. First general advantages and disadvantages will be introduced. The time stability of the multiplier and differences among markets will be analysed. This paper uses publicly available data published by Damodaran and the own verification is processed on selected industry branches. Tools of descriptive statistics are used for this research. As a conclusion, this paper shows possible threats of using EBITDA multiplier. The values of the multiplier heavily depend on the time and specific market location.
Czech name
—
Czech description
—

Project
—
Continuities
I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year
2017
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Article name in the collection
Proceedings of the 5th international scientific conference IFRS: Global Rules and Local Use
ISBN
978-80-906585-4-7
ISSN
—
e-ISSN
—
Number of pages
12
Pages from-to
72-83
Publisher name
Anglo - American University, Prague
Place of publication
Praha
Event location
Praha
Event date
Oct 20, 2017
Type of event by nationality
WRD - Celosvětová akce
UT code for WoS article
—

Similar results(10)