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1. Pick an industry 2. Pick a multiple (P/E, P/BV, EV / EBITDA etc) 3. Make a short list of possible explanatory variable (at least
1. Pick an industry 2. Pick a multiple (P/E, P/BV, EV / EBITDA etc) 3. Make a short list of possible explanatory variable (at least one variable for profitability, one for growth, one for risk) (the variables used cannot have correlation >0.6 ) 4. Remove Nas and outliers ( 3 sigma rule) 5. Try different regressions with different variables R2>0.55 (maximize this), F significance
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