Résumé
There are different ways to valuate a company; and when it is not possible to find information about a company - because it may simply not be listed on the stock market - the multiples method constitutes a good alternative.
We will highlight in this paper the pros and cons of the multiples method, in about one page.
Extract:
In order to valuate a company, the DCF (Discounted Cash Flow) method is widely used by analysts. Another method to achieve a valuation is the one using multiples. But it seems that this method is quite debated. Here we are going to see some of the main advantages and disadvantages in using those multiples [...]