top of page

Trading multiples

The method of trading comparables, also known as the method of comparable shares (or trading multiples), is a company valuation methodology which is based on the comparison of the company with other similar companies listed on the stock exchange (defined as comparables or 'peers') . This method may be appropriate in different contexts, for example: initial public offering (IPO), merger or acquisition, participation, sale. ​ It is used when you want to compare the company in question with other similar publicly traded companies, in order to determine the value of the company or the holding. The method presents various measures (EV/EBIT, EV/EBITDA, EV/SALES, P/E), the choice of which depends on the objective of the valuation and the nature of the company.

bottom of page