Nism XV - RG (191-197)

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NISM XV

BY RISHABH GUPTA
GROWTH ADJUSTED PRICE TO
EARNINGS RATIO (PEG RATIO)

Incorporating growth

Evaluation of valuation

Comparison across industries

Variations and modificationsLimitations

2
Comprehensive
Enterprise Value to EBIT(DA) valuation metric

Ratio
Focus on operating
performance

Comparison across
companies

Debt and
acquisition
considerations

3
ENTERPRISE VALUE (EV) TO SALES RATIO

Company
valuation

Simplicity
and
Focus on revenue
comparab
ility

. Industry-dependent
Price to Book • Valuation indicator
Value Ratio • Limitations
ASSETS BASED
Enterprise Value • Valuation indicator
(EV) to Capital
• Industry-dependent VALUATION
Employed Ratio
MATRICES
Net Asset Value • Valuation indicator
Approach • Limitations

9/4/20XX Presentation Title 5


RELATIVE VALUATIONS - TRADING AND
TRANSACTION MULTIPLES

Trading Multiples Transaction Multiples


• Common Trading Multiples • Purpose
• P/E Ratio • Comparable Transactions
• P/S Ratio • Calculating Multiples
• EV/EBITDA Ratio • Common Transaction Multiples
OTHER VALUATION
PARAMETERS IN NEW AGE
ECONOMY AND BUSINESSES

Valuation Challenge
Vulnerability
Storytelling
Complex
Limited
Historical
Valuation
Profit
to
andMarket
Precedent
Investor
Visibility
Factors
Sentiment
Belief

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