The Acquirer's Multiple. I am wondering you would provide this ratio ?

Jae Jun 2 months ago • updated 2 months ago 3

There is a valuation method from " The Acquirer's Multiple: How the Billionaire Contrarians of Deep Value Beat the Market". I am wondering you would provide this ratio ?

This would be a nice-to-have addition, but it is not necessary since Enterprise Value/EBITDA (the inverse of The Acquirer's Multiple) is already an available data point in OSV Screener.  So for example, I just entered a custom screen with Enterprise Value/EBITDA between 3 and 8 and a minimum EBITDA of $5 million. The result was 477 companies (Note: there is a total 5,415 companies currently in the OSV universe) -- thus the top 8.8% companies meeting these criteria.

Yes that is correct.

Or EV/EBIT is pretty much what they use also. Just a nice name to make it stand out :)