What is the rational behind the utilization of each one of the multiples? How to relate them to the company's main value drivers?
Multiples that use EBITDA: Don't consider the continuity of the company, as the depreciation and the amortization is not included.
Multiples that use EBIT: Consider the continuity of the company.
Multiples that use SALES: Important when the volume is the most important thing to the company. Is related to the brand value and the cost of creating and positioning a brand. It is also important when the business depend on the points of sales.
Multiples that use Number of stores: Can be compared to the cost of setting the new stores, and this is the most important asset.
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