Comparable Transaction Analysis - If Bombay Pizza company is trading at 8x revenue and recently Delhi Pizza Company was sold for 12x revenue.,,,,,



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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 Acquisitions as a method to value your pizza company whose revenue is Rs. 80 crores (800 million), what will be the value of your pizza company?

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Since you are using comparable acquisition, then you should be using the 12x multiple on the revenue. The 8x multiple is only if you are using comparable trading analysis.