PeerComps data

searcher profile

September 07, 2024

by a searcher from University of California, Los Angeles in Orange County, CA, USA

I'm using PeerComps to get an idea of multiples that are paid for different industries. Each line item in a given search has an "enterprise value". My question is: does this enterprise value include NWC, or does it just represent the Multiple x Cash Flow?

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commentor profile
Reply by an intermediary
from Wake Forest University in Winston-Salem, NC, USA
PeerComps includes "normal inventory" in its numerator ("Sales Price"), it specifically excludes AR and AP, so the product of a PeerComps Price/EBITDA * EBITDA will be a price including normal inentory, and before AR-AP. Deal Stats, on the other hand, is whatever is input, so you have to look at the full detail (the 212 field output) to see what was included for each transaction. The denominator is "Adjusted EBITDA," as reported by SBA lenders, so they are likely to follow the appropriate definition more consistently.
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Reply by an admin
from Massachusetts Institute of Technology in Portland, OR, USA
^redacted‌ have previously commented on PeerComps and might be able to share their insights with you here.

Be sure to check out the 45k transactions on Searchfunder through our partnership with BVR DealStats here: www.searchfunder.com/bvr/search

If anyone else has questions on DealComps, or related topics, please post them and I'll do my best to get them answered for you.
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