HuskyGrad2010

bchadwick Wrote:
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> Glad to see you back, QJ.
>
> Yahoo can also give you industry multiples if you
> don't have a BBG subscription, though I've often
> wondered how it goes about classifying
> industries.
>
> Presumably multiples expand and contract over the
> business cycle because the near term cash flows
> are more valuable than the far term cash flows,
> and the value of those will fluctuate over the
> business cylce. Then the next question is how
> sentiment affects the multiples. With that, I
> don't see how you can do much other than look at
> long term averages. Possibly if you are clever
> enough, you can have some kind of demographic
> model that looks at the demand for cash vs risky
> instruments and as the demand for cash goes up
> (say for retirement expenses) then the risk
> premiums go up and that will lower multiples over
> time.


Do you have a yahoo link for EV/Rev and EV/EBITDA comps? I see the public company multiples such as P/B and P/E but I'm looking for multiples suitable for private transactions.

I have no problem hopping on Bberg for the info. This may be an instant message help request since I did not find this information quickly the other day.

Overall calculating forward multiples seems a bit make-believe. Damodaran cautions it but provides guidance (which is to leave EV as current when forecasting).