Tapestry has a five-year growth rate of almost 10 times Capri's growth rate and Tapestry has a lower discount rate than Capri, yet they have almost identical EV/EBITDA values. Does this mean that the underlying value method does not work in this case? What might explain the similar EV/EBITDAs?

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The similar EVEBITDA values between Tapestry and Capri despite Tapestry having a significantly higher growth rate and a lower discount rate could be a... View the full answer