Valuation in private markets requires multiple analytical lenses, each providing a different perspective on intrinsic and market value.
EBITDA Multiples
The most common private equity valuation metric is enterprise value to EBITDA (EV/EBITDA). Sector, growth rate, profitability, market position, and management quality all influence what multiple a company commands.
Comparable Company Analysis
We look at what similar businesses have sold for in recent M&A transactions and how comparable public companies trade in the market to establish valuation context for any acquisition target.
Discounted Cash Flow
DCF analysis underpins our intrinsic value assessment, modeling projected free cash flows over a 5-10 year horizon and discounting them back at an appropriate cost of capital.
Leverage and Returns
Private equity returns are a function of operational improvement, multiple expansion, and financial leverage. Understanding the interaction of these three drivers is essential for accurate return modeling.
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