Comparable company analysis
ProValues a company from the multiples of a group of listed peers: EV/Sales, EV/EBITDA, EV/EBIT and P/E, for years N and N+1, down to an equity value range and a value per share.
- 6 sheets
- 4 multiples for N and N+1, quartiles
- 2 checks and 2 alerts
Method
For each peer, EV is market capitalisation plus net debt (negative when the peer holds net cash). EV multiples divide EV by sales, EBITDA or EBIT. P/E divides market capitalisation by net income.
A multiple is marked "n.m." when its numerator or denominator is not positive, for example with negative net income. It then drops out of the statistics. The number of values kept is shown under each column.
For each of the eight multiples, the workbook computes min, 1st quartile, median, mean, 3rd quartile and max. Quartiles rely on Excel's QUARTILE function, with inclusive linear interpolation.
The 1st quartile, median and 3rd quartile are applied to the matching metric of the target. EV multiples: EV = multiple × metric, equity = EV − net debt. P/E: equity = P/E × net income, EV = equity + net debt.
The primary multiple, picked by its number from 1 to 8, feeds the outputs: an equity range (Q1, median, Q3) and a value per share at the median, using the target's diluted share count. Metrics are not adjusted.
What's in the file
- 01CoverCompany, currency, generation date, checks status, contents, colour conventions and disclaimer.
- 02InputsInputs: target net debt and shares, metrics for N and N+1, primary multiple, and the peer table.
- 03MultiplesEV and eight multiples per peer, with min, quartiles, median, mean, max and count kept at the bottom.
- 04ValuationFor each multiple: implied EV and equity value of the target at the 1st quartile, median and 3rd quartile.
- 05OutputsEquity value range and value per share for the primary multiple, selected by its number.
- 06ChecksTwo checks (statistics ordered, EVs reconcile) and two alerts (value available, enough peers).