Financial Poise

Transaction Multiple

  • October 12, 2021
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Transaction Multiple is a financial metric used in valuing a company. As accurately described by Wall Street Oasis, “[i]t is used as part of comparable analysis. The theory is that you look at a group of companies similar to the one you are valuing, see what kind of prices they have been bought and sold for, and apply a similar valuation method to the target company.”