Introduction
For the Trading Multiples and Transaction Multiples method, the football field chart displays several visual indicators to help you interpret the valuation results. These include the orange dot, the blue bar, and a dotted reference line.
What Does the Orange Dot Represent?
The orange dot represents the concluded Enterprise Value (EV) or Equity Value (EqV) for the selected trading or transaction multiples valuation method.
It is calculated by:
Determining the median multiple from the selected peer or transaction set.
Applying any company-specific discount or premium to obtain the applied multiple.
Multiplying the applied multiple by the relevant financial metric (such as Revenue, EBITDA, EBIT, Earnings or Book Value) and adjusting net debt, if required (depending on the concluded value and the selected multiple).
Because the orange dot is always based on the applied (post discount/premium) multiple, changing the range calculation method does not change its position. Only changes to the applied multiple (for example, by changing the peer selection or by adjusting the company-specific discount/premium) will move the orange dot.
How to Change the Range Calculation
Navigate to Valuation Overview.
Click Change Parameters in the upper-right corner.
Under Multiples, locate the Range Calculation setting.
Select one of the available calculation methods:
Quartile (Q1–Q3)
Minimum–Maximum
±15% Range (default selection)
The football field chart updates automatically to reflect the selected range calculation for all Trading Multiples and Transaction Multiples valuation methods.
Range Calculation Methods
Quartile (Q1–Q3)
Calculates the valuation range using the first quartile (Q1) and third quartile (Q3) of the selected peer or transaction multiples.
Q1 (25th percentile) is the value below which 25% of the multiples fall.
Q3 (75th percentile) is the value below which 75% of the multiples fall.
The 25th percentile (Q1), Median, and 75th percentile (Q3) values are displayed for the respective multiples in the Peers and Transactions modules, allowing you to see the underlying statistics used in the valuation range calculation.
Using the interquartile range (Q1–Q3) reduces the influence of unusually high or low multiples, providing a valuation range that reflects the middle 50% of the selected data set.
Minimum–Maximum
Calculates the valuation range using the lowest and highest multiple in the selected peer or transaction set.
Using the full range captures the complete spread of the selected data, including extreme values. This can be useful when you want to reflect the widest range of potential valuation outcomes or assess the impact of outlier multiples.
±15% Range
Calculates the valuation range as 15% below and 15% above the median multiple.
Using a fixed percentage around the median provides a consistent and balanced valuation range that is less influenced by the distribution of the selected data. This method can be useful when the peer or transaction set contains only a limited number of observations or when you prefer a standardized range across different valuations.
Note: If fewer than three valid data points are available for a multiple (for example, EV/Sales), the range automatically defaults to the ±15% Range method, regardless of the selected option.
What Does the Dotted Reference Line Represent?
The football field chart also displays a dotted reference line along with the valuation range (blue bar) for the trading and transaction multiples methods, which indicates the position of the valuation based on the median multiple before applying any selected discount or premium.
The position of the dotted reference line relative to the blue valuation range depends on whether the adjusted multiple is lower or higher than the median multiple:
If the applied multiple is lower than the median multiple (discount), the dotted reference line appears to the right of the orange dot.
If the applied multiple is higher than the median multiple (premium), the dotted reference line appears to the left of the orange dot.
Hover over the marker at the end of the dotted reference line to view the concluded Enterprise Value (EV) or Equity Value (EqV) calculated using the median multiple before applying the selected discount or premium.
Comparing the dotted reference line with the blue valuation range provides a visual indication of the impact of the selected discount or premium on the concluded valuation.
Understanding the Subtitle
The subtitle beneath each Trading and Transaction Multiples valuation method provides a summary of the multiples used in the valuation:
Mid – the median trading or transaction multiple.
Applied – the multiple used in the valuation after applying any company-specific discount or premium.
Concluded Value – the concluded Enterprise Value (EV) or Equity Value (EqV) calculated using the applied multiple.
Hover over the subtitle to view the selected Range Calculation method.