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Assume that REA Group Limited is perfectly comparable to Xero for the EV-to-Sales multiple. In addition, assume the enterprise value is estimated with a simplified
Assume that REA Group Limited is perfectly comparable to Xero for the EV-to-Sales multiple. In addition, assume the enterprise value is estimated with a simplified constant growth model (as shown in the lecture notes). List out the drivers/metrics that must be identical for these two firms so that they are perfectly comparable for the EV-toSales multiple. List down and briefly explain four correct drivers/metrics; incorrect answers will be penalised. Fill in vour answer here
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