Relative Valuation

1. Enterprise valuation using EBITDA multiples.

1.1. Is the most popular approach used by business professionals to estimate a firm's enterprise value.

1.1.1. EBITDA: Earnings before interest, taxes, depreciation and amortization

2. Valuation using comparables

2.1. Identify similar or comparable investments and recent market prices.

2.2. Calculate similar valuation metric for use in

2.3. Calculate an initial estimate of value

2.4. Refine your initial valuation estimate to the specific characteristics

3. Valuing commercial Real State

3.1. Value = (Cash flows / Discount Rate)

3.1.1. The capitalization rate is the reciprocal of the multiple used to value the property.