ABOUT THIS CONTENT
You can estimate equity as well as firm value multiples, based upon fundamentals.Spreadsheets included:
• eqmult.xls - This is a model that uses a two-stage dividend discount model to estimate the appropriate equity multiples for your firm. It will give you identical answers (in terms of value) as the 2-stage DDM model.
• firmmult.xls - This model uses a 2-stage FCFF model to estimate the appropriate firm value multiples for your firm. It will give you identical answers (in terms of value) as the 2-stage FCFF model.