in Comparable trading analysis module the video says you can ignore the EBITDA multiple of Pizzawala. It is said that the multiple is meaningless as it is huge. It is just 3 times the Domino's EBITDA multiple, similar to the revenue multiple which is also 3 times the Domino's revenue multiple. So why are we ignoring it. Infact even though the multiple is high it gives a lower market value (50 lacs * 150 = 75 CR) as compared to the revenue multiple which is giving valuation of 150 CR.
Feb 06 2014 12:53 PM