How Are Transaction Multiples Calculated in Valutico?
Valutico calculates transaction multiples using financial data that reflects a company’s most recent performance. This approach ensures that valuations are grounded in reality and reflect up-to-date financial health.
What Time Frame Do Transaction Multiples Reflect?
For transactions, Valutico uses multiples based on the Last Twelve Months (LTM) of financial performance prior to the transaction date. This provides a more accurate snapshot of a company’s financials at the time of the deal, as opposed to relying on outdated or forecasted data.
LTM vs Fiscal Year Data
Valutico applies Fiscal Year data when calculating multiples for public peer comparisons, both for reported financials and analyst estimates. This provides a standardized baseline for benchmarking purposes.
However, when calculating transaction multiples, we rely on LTM data to better reflect recent performance and market conditions around the deal.