Comparable Multiples Definition & Application Wiki

Comparable Multiples Definition & Application Wiki

Last Updated by WikiWealth

Short Definition (relative valuation, trading multiple, market-based valuation)

A comparison between two financial measures used to determine the value of a target company.

For Example: 1.0x times the revenue of a target company results in the expected value of the target company in the market place.

Long Definition

See Dictionary Terms

See Academic Resources

Source: http://en.wikipedia.org/wiki/Multiple_finance