What are multaples?

Answer 1

Multiples refer to a financial valuation method used to assess a company's value by comparing it to similar businesses, typically using ratios like price-to-earnings (P/E), price-to-sales (P/S), or enterprise value to EBITDA (EV/EBITDA). This approach helps investors determine a company's worth based on how the market values comparable companies. Multiples can vary significantly across industries and are commonly used in Mergers and Acquisitions to provide a quick valuation benchmark.