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Primer on Multiples Valuation and Its Use in the Private Equity Industry

By: Victoria Ivashina and Henrik Boe
  • Format:Print
  • | Language:English
  • | Pages:11
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Abstract

This note explores the mechanics of multiples, different types of multiples, when and how to use them, and common pitfalls associated with multiples valuation. While a multiples approach is a very convenient valuation method, breaking down the underlying assumptions can significantly improve the robustness and power of multiples valuation.

Keywords

Valuation Methods; Multiples; Private Equity; Valuation; Measurement and Metrics

Citation

Ivashina, Victoria, and Henrik Boe. "Primer on Multiples Valuation and Its Use in the Private Equity Industry." Harvard Business School Background Note 218-017, July 2017. (Revised January 2020.)

About The Author

Victoria Ivashina

Finance
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