If Bombay Pizza company is trading at 8x revenue and recently Delhi Pizza Company was sold for 12x revenue. If you were to use Comparable trading multiples as a method to value your pizza company whos


2 Answer(s)


The valuation is 800 million x 8 = 6.4 billion.
Revenue is 800 million so since 8x is the comparable trading multiple, you multiply with that number to get the final valuation.

The valuation is 800 million x 12 = 9.6 billion.
Revenue is 800 million so since 12x is the comparable trading multiple, you multiply with that number to get the final valuation.