Professionals in accounting, tax consulting, banking or deal advisory are often confronted with the valuation of a company or of a business share. The “MultipleGuide” provides the starting point for addressing this question. In clientmeetings, the “MultipleGuide” can provide a quick answer and ensure a confident appearance.
In company valuations for legal and tax purposes, multiples play a rather subordinate role: for the most part, they are only used to check the plausibility of valuations results. For example, IDW S1 (the German valuation guideline for auditors) points out that simplified valuation procedures such as EBIT and revenue multiples can only provide indications in individual cases for the sake of plausibility checks of valuations based on discounted cash flow methods. Multiples therefore cannot substitute a full valuation report.