When evaluating an organization using multiples, it is crucial to consider the scope of its operations. Organizations often operate in various sectors with different business units, each having distinctly different ROIC, G, and WACC.
Therefore, it is necessary to break down the organization into its individual business units and find comparable organizations for each unit. Below is an example of the valuation of one such organization in the table.
Source:
#VALUATION – Measuring and Managing the Value of Companies, 7th Edition
McKinsey & Company,
Tim Koller, Marc Goedhart, David Wessels
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