Question
Which of the following statements is correct regarding valuation multiples? 1. Multiple valuation is based on how the market currently values similar or comparable firms
Which of the following statements is correct regarding valuation multiples?
1. Multiple valuation is based on how the market currently values similar or comparable firms (the "income approach").
Multiple values for different firms should be the same if these firms have the same value drivers and accounting policies.
III. The difference between EV/EBIT multiple and EV/EBITDA multiple is the level of interest expenses and taxes in arriving at the earnings used in the formula..
options
O A. I only
OB. Il only
OC. Ill only
OD. I and II only
OE. None of the choice combinations in A, B, C and D are correct
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