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Including comparison with a benchmark to your presentation is very good as you can see

clear if the better/worst performance is only for your index or overall for the sector

Trading multiple versus Transactions Multiple

This is a relative valuation, using comparable

Intrinsic valuation -> DCF try to compute present value of your future value, its about your
expectations based on your valuation of company; intristic as inside the company, how the
company deals CFs
RV-> comparable; how the market value me, the underline assumption is that the market is
efficient; comparable -> multiples

Underline assumption of FCF

FC/ (1+i) * -> FCF t+1/ (r-g) (In the perpetual growth prospect what is the value today)

EX multiples and hotdogs

100K$ EBITDA cad marge operational
1M $ EV

Your multiple is 1M$/ 100K$ = 10x

The buyer set up the price after the transaction value

Comment définir paramètres dans trading multiple ? taille dans le même fourchette , définir
avec qui tu veux comparer

Idee de trading multiples est un fourchette pour EV qui permet de négocier le prix, 2 e
argument car la firme est coté sur le marché et il regarde si les concurrents sont acheté ou
pas à quel prix (histoire de ta maison)

Trading mulptiple say the value of market

You put a higher price/
- To get your deal compare to the other
- In industrial logic you think synergy financial or financial

- Operational synergy – cross selling fiting product
- Cost efficiency- EoS some functional jobs can be reorganized or reag of
- Financial synergy- tax synergie by consolidating your income statement, better
financial term in negociaiton with banks

When you are buying a firm you do underlying assumption that the company will continue
to grow
We use 2 or more valuations methods to check;
Check the spread of different methods and try to find the bug

Fair market value and price

In general transaction value is higher than fair value because you have a premium

You need to make comparable table of transaction did you overpay or not
Final price is it good or not? Why?