Historical multiples

Modified on Mon, 10 Aug, 2020 at 4:33 PM

Historical multiples refer to valuation multiples calculated using past earnings.

 

Where do I find it?

Historical multiples are available in the Historical Multiples view under Company Data.

 

What do I need to know?

Historical multiples are calculated using the market cap or the EV at the fiscal year end date.

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.


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