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Calculation Breakdown for Trading and Transaction Multiples

Updated over a week ago

The Trading and Transaction Multiples section includes a detailed breakdown of how each multiple is calculated.

Key Calculations

Here’s a breakdown of how we derive the core metrics:

Enterprise Value (EV):

EV = Market Capitalization + Total Debt – Cash and Cash Equivalents

Equity Value (EqV):

Calculated based on Enterprise Value, adjusted for debt and cash positions.

Equity Value per Share:

Equity Value ÷ Total Shares Outstanding


Multiple Valuation Methods Supported

We display calculations for both Trading Multiples and Transaction Multiples, including:

Trading Multiples:

  • EV/Sales

  • EV/EBITDA

  • EV/EBIT

  • Price-to-Earnings (P/E)

  • Price-to-Book (P/B)

Transaction Multiples:

  • EV/Sales

  • EV/EBITDA

  • EV/EBIT

  • P/E

Each multiple is presented across different timeframes, Previous Year (PY), Current Year (CY), and Next Year (NY) to give a well-rounded temporal view.



How to use

  • Interactive Charts:
    Hover over points in the bar chart to see how each multiple is calculated and the exact values used.

  • Breakdown Table:
    A detailed calculation table appears on the right of the chart for instant reference.

  • Normalization Adjustments:
    Toggle adjustments to normalize earnings and cash flows, excluding extraordinary items for a clearer picture.

  • Smart Fallbacks:
    If annual data is missing, the system automatically uses semi-annual or quarterly figures to maintain consistent calculations.



Where to Find It

You can access this feature directly within your valuation workflow:

  1. Navigate to the Valuation Overview (last module in the flow).

  2. Scroll to the sections with Interactive Charts.

  3. On the left of the chart, you’ll find a table with the full breakdown of multiples used.

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