Advanced

Market multiples valuation: peer set screening and adjustments

Creates a peer screening framework and calculates valuation multiples with normalization adjustments. Useful for quick valuation triangulation and fairness work.

Build a market multiples valuation approach for {subject_company}.

Inputs:
- Candidate peers list: {candidate_peers}
- Subject metrics (revenue, EBITDA, growth): {subject_metrics}
- Peer financial metrics and multiples: {peer_multiples_data}
- Differences to adjust for (size, margin, growth): {adjustment_factors}
- Nonrecurring items to normalize: {normalization_items}

Output:
1) Peer screening criteria and selected peer set rationale.
2) Multiples table (EV/Revenue, EV/EBITDA, P/E if relevant) with summary stats.
3) Normalization adjustments and resulting implied value range.
4) Sensitivity to multiple selection and outliers.
5) Documentation checklist for workpaper defensibility.

Keep it methodical and transparent.

Related Prompts