Overview
When comparing multiples on Valutico to other financial databases such as S&P CapitalIQ, Yahoo Finance, Pitchbook, or BVR, you may notice differences. This article explains why these differences occur and how Valutico calculates its multiples.
Key Differences in Calculation
As one of our major data providers is S&P CapitalIQ, it's not unusual to see different multiples between Valutico and the CapitalIQ platform.
For example, using Amazon as a peer, you might observe the following difference:
Valutico (2020 EV/EBITDA): 29.9x
CapitalIQ (2020 EV/EBITDA): 34.2x
This discrepancy stems from various factors related to our data sources and calculation methods.
How Does Valutico Calculate EV/EBITDA?
To understand why the multiples may differ, it’s important to know how Valutico calculates its multiples:
Viewing Peer Details
You can view the specific details of our multiple calculations directly within Valutico. Follow these steps:
Navigate to the Peers Tab.
Click the three dots next to the peer you want to examine.
Select Financials.
This will open a detailed tab showing:
The data sources we use.
How we calculate the Market Cap, Enterprise Value, Multiple, and Capital Structure.
Common Reasons for Differences
The most common reasons for differences between Valutico and other financial databases include:
1. Differences in the Net Debt Bridge
We include the following items in our net debt bridge for the calculation:
Debt
Pensions
Minority Interests
Cash accounts
These inclusions may vary from other platforms, potentially causing small discrepancies in the multiples.
2. Use of Calendarized Year-End Financials
Valutico uses calendarized December/year-end financials to calculate multiples. In contrast, other data providers may use LTM (Last Twelve Months) or TTM (Trailing Twelve Months) data. This difference in time periods can lead to variations in the calculated figures.