What Is a Common Multiple to Use in a Comparable

question 22

Multiple Choice

What is a common multiple to use in a comparable companies analysis for a retail company?

• A)EV / Subscribers
• B)EV / Reserves
• C)EV / Square footage
• D)EV / Production

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Definitions:

Sale Price

The amount of money for which a product, asset, or service is sold in the marketplace.

Revaluation Model

An accounting method allowing for the increase or decrease of an asset's value on the balance sheet, based on current fair values.

Fair Value

The price at which an asset could be exchanged or a liability settled between knowledgeable, willing parties in an arm's length transaction.

Gain on Sale

The financial profit gained from selling an asset for more than its book value.