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Background Note
| HBS Case Collection
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2009
(Revised from original 2005 version)
Corporate Valuation and Market Multiples
by
Timothy A. Luehrman
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Abstract
Provides a basic introduction to the use of market multiples for business valuation. Explains the method's reliance on the Law of One Price, sets forth the basic steps for using the method, and reviews some practical issues arising in its application.
Keywords: Business Ventures;
Price;
Market Transactions;
Mathematical Methods;
Valuation;