What is a multiple?
The good, bad and the ugly

  • Author:
    Geoff Robinson
  • Level:
    Intermediate to Advanced
  • Study time:
    Always adding content
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Course overview
In the intricate world of financial analysis, the concept of a valuation multiple serves as a cornerstone for comparing the market value of firms within and across industries.

This research note, titled "What is a Multiple? The Good, the Bad, and the Ugly," endeavors to demystify the role and utility of multiples in business valuation and investment decision-making. As the bedrock of relative value assessment, multiples must be wielded with a blend of scrutiny and finesse, given their ability to encapsulate value against critical financial metrics.

Yet, the utility of a multiple is not absolute; it paints a picture that is at times incomplete. The note will peel back the layers of commonly held perceptions about multiples, examining their strengths in comparative analysis, the pitfalls of their misinterpretation, and the nuanced interplay with fundamental analysis, revealing the intricacies that drive and define the true value of a business.

What's included?

  • Fundamental research written by Geoff Robinson
  • Analyst-curated insights
  • Embedded podcasts
  • Embedded videos
  • Downloadable models, where applicable

Who should read this?

This research note is designed for financial analysts, investors, business students, and corporate strategists seeking a deeper understanding of valuation techniques in the realm of corporate finance and investment. Professionals involved in mergers and acquisitions, equity research, or those managing investment portfolios will find particular value in understanding how multiples provide a shorthand for evaluating company worth relative to peers. Moreover, entrepreneurs and business owners looking to grasp the implications of valuation multiples on their ventures can benefit from this analysis. The note will serve as a guide for both seasoned experts who desire a refresher and novices aspiring to comprehend the foundational aspects of financial valuation metrics.

Why TheInvestmentAnalyst.com?

We are the only training house that is able to bring top-ranked analyst experience into your classroom. We buck the trend. Most training businesses recruit junior ex-bankers to become their trainer. Our instructors cut their teeth teaching and then gain senior experience with investment banks.
We believe, you could not be in better hands.

Geoff Robinson FCA FMVA MFM

Thought leader, instructor, writer, financial influencer, Former UBS Managing Director and 8x #1 ranked analysts EMEA Institutional Investor Survey
Geoff has had a varied career. He was a Managing Director within UBS Equity Research, leading their Global Fundamental Analytics franchise. During this time, he was #1, ranked 8x in the EMEA Institutional Investor Survey. Before UBS, he was a material equity investor and LBO co-investor in two market exited training consultancies. Geoff has a passion for learning and is well-known for his ability to break down complex subject matter and distil it to an audience in a digestible and engaging manner. He brings this passion to TheInvestmentAnalyst.com.