Abstract
Despite their widespread usage, only limited theory is available to guide the application of multiples. With a few exceptions, the finance and accounting literature contain inadequate support on how or why certain multiples or comparable firms should be chosen in specific contexts. Compared to the DCF and RIV approach, standard textbooks on valuation devote little space to discussing the multiples valuation method.9
E.g., Benninga & Sarig (1997), Palepu, Healy & Bernard (2000), Damodaran (2001, 2002, and 2006), Penman (2004), Lundholm & Sloan (2004), Arzac (2005), or Koller, Goedhart & Wessels (2005) in English and Spremann (2002, 2004, and 2005), Ballwieser (2004), or Richter (2005) in German.
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Benninga, S.Z., Sarig, O.H., 1997. Corporate Finance: A Valuation Approach. McGraw-Hill, New York, NY.
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(2007). Literature review. In: Equity Valuation Using Multiples. Gabler. https://doi.org/10.1007/978-3-8350-9531-1_2
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DOI: https://doi.org/10.1007/978-3-8350-9531-1_2
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