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Multiples by industry?


Sunrider
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Hi all

 

I'm wondering if anyone could direct me to (or share notes) on what appropriate multiple for FCF, EBITDA are across industries (in the sense of what range they tend to trade at and what normalised looks like).

 

I was looking at the recent Herc Equipment Rental spin-off (HRI) and am trying to wrap my head around whether this is an opportunity worthwhile to invest in or not (so any views on this welcome as well). That led me to wonder what sort of multiples I should put a business like this (cyclical in this case) and businesses in other industries ... people often throw a "this should be x times [insert metric]" around quite often but I don't think I've seen this written down anywhere as ranges of values across industries.

 

Many thanks.

C.

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Hi Sunrider,

 

I know this isn't exactly what you are looking at, but here is a link to Aswath Damodoran's site where he has some rough EBITDA and EBIT Multiples:

 

http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/vebitda.html

 

There is an excel link in there too. In addition, I believe he has this going back several years. If you have a friend with access to Bloomberg or Cap Iq I believe you can search by more discrete subsectors and then make a list of the names and pull in historical multiples.

 

Good luck!

 

 

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Thank you - these seem to be point in time though ..?

 

Hi Sunrider,

 

I know this isn't exactly what you are looking at, but here is a link to Aswath Damodoran's site where he has some rough EBITDA and EBIT Multiples:

 

http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/vebitda.html

 

There is an excel link in there too. In addition, I believe he has this going back several years. If you have a friend with access to Bloomberg or Cap Iq I believe you can search by more discrete subsectors and then make a list of the names and pull in historical multiples.

 

Good luck!

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