What is Multiples Valuation? It's time to finally come back to doing some more technical analysis. Since it's been a while, I decided to started of with a simple Multiples valuation to get the ball rolling.Multiples Valuation or the multiples approach to valuation is a method of valuating companies based on the belief that similar assets sell at similar prices. In the case of companies, financial ratios that are calculated by dividing the market value of estimated value of a stock by a specific item in the companies' financial reports. Common ratios used in this approach are: Equity value & Enterprise value ratios. Enterprise value multiples include the Enterprise value to sales ratio, EV/EBIT, and EV/EBITDA. Equity multiples are ratios that examine a company's share price with values that underline the company's performance like earnings,or sales. Common ratios include P/E (price-to-earnings ratio), and P/S (price-to-sale ratio). I learned of these ratios and t...
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