Current multiples

Current multiples refer to valuation multiples calculated using the current value for the Entreprise Value (EV).

Current multiples include:

• historical multiples based on standardized financials for the last completed fiscal period: Last, Last Twelve Months (LTM);
• forward multiples based on consensus estimates for the current fiscal period and the next ones: Next Twelve Months (NTM), FY0, FY1.

Where do I find it?

Current multiples are available in the Main Multiples view under Company Data.

What do I need to know?

Current multiples based on per-share metrics (such as earnings per share or book value per share) are calculated using the last closing price, while  current multiples based on company-level metrics (such as net sales, EBIT or EBITDA) are calculated using the current market cap or EV.

EV is not a suitable metric for financial institutions (banks and insurance firms) because interest is a critical component of both revenue and expenses. Likewise, EBIT or EBITDA are not calculated because separating operating and financing activities is impossible as interest, investments, and debt are related to the company’s core operations. For insurance firms, analysts tend to use the concept of embedded value, which unfortunately is not available on Infront Analytics.

On most views, you can click a multiple figure to check the underlying calculation formula. It is also possible to customize the way current EV is calculated.