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The multiples utilised During this method could be misinterpreted or incomparable as a result of variances in accounting procedures of various corporations.

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The worth determined by using this process might not be dependable as this method employs the business’s fiscal info i.e. Earnings ahead of fascination tax depreciation and Amortization (EBITDA), which could be manipulated via the Group for demonstrating a constructive overall performance of its company.

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As a result, the multiples made use of could have a prerequisite to become modified based on the accounting policies, and tend to take in more time as compared with other firms.

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