Trading vs transaction multiples

Trading multiples use public-market prices; transaction multiples use observed acquisition or deal prices. State whether the transaction dataset includes announced deals, completed deals, or both, and disclose completion status.

Trading vs transaction multiples in round numbers

Hypothetical: public peers suggest an 8.0x enterprise-value-to-earnings before interest, taxes, depreciation and amortization (EBITDA) multiple on a comparable latest-twelve-month basis. Applying it to US$5.83 million of annual EBITDA implies US$46.64 million of enterprise value, about US$46.6 million. A transaction comparison would instead use deal prices with the same valuation and earnings basis, with transaction dates and status disclosed.

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Hypothetical trading EV/EBITDA comparison; same currency and annual period
Input or resultAmount
Latest-twelve-month EBITDAUS$5.83 million
Assumed trading EV/EBITDA8.0x
Indicative enterprise valueUS$46.64 million (about US$46.6 million)

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