Multiples valuation: the methodology that sets the price

Conceptual illustration of company valuation in M&A showing a executive holding a futuristic blue holographic display with key financial metrics including EV/EBITDA, P/E, and EV/Revenue multiples.

Multiples valuation is the M&A method that estimates a company’s price by applying a market multiple (on sales or EBITDA) drawn from comparable transactions or deals. A company’s value and its price are not the same thing, and confusing the two is the costliest mistake in any M&A deal. Antonio Machado put it succinctly a […]