Valuation multiples are ratios used to compare a company's value relative to a specific financial metric. Commonly used multiples include:
1. Price-to-Earnings (P/E): This ratio compares a company's share price to its earnings per share. 2. Enterprise Value to EBITDA (EV/EBITDA): This multiple measures the value of a company, including debt, relative to its earnings before interest, taxes, depreciation, and amortization. 3. Price-to-Sales (P/S): This ratio compares a company's stock price to its revenue per share.