Download This PaperThe Right Role for Multiples in Valuation
McKinsey on Finance, No. 15, pp. 7-11, Spring 2005
5 Pages Posted: 28 Sep 2005
Abstract
Discounted cash flow valuations are the best way to assess the value of projects, but they are only as accurate as the forecasts behind them. A careful review of a company's multiples - and those of its competitors - can help verify those underlying forecasts. However, executives must be critical consumers of published multiples and probe unexpected differences.
Keywords: Valuation, Multiples, Comparables
JEL Classification: G30, G34
Suggested Citation: Suggested Citation
Koller, Tim and Goedhart, Marc and Wessels, David, The Right Role for Multiples in Valuation. McKinsey on Finance, No. 15, pp. 7-11, Spring 2005, Available at SSRN: https://ssrn.com/abstract=805166
David Wessels (Contact Author)
University of Pennsylvania - Finance Department ( email )
The Wharton School
3620 Locust Walk
Philadelphia, PA 19104
United States
215-573-9313 (Phone)
Do you have a job opening that you would like to promote on SSRN?
Feedback
Feedback to SSRN
If you need immediate assistance, call 877-SSRNHelp (877 777 6435) in the United States, or +1 212 448 2500 outside of the United States, 8:30AM to 6:00PM U.S. Eastern, Monday - Friday.