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Valuation

Value a company by trading multiples

valuation_multiples · Reads only · Markdown

Peer multiples with their quartiles and the enterprise and equity value they imply for the target, less any discount.

Free*

*Free up to 1,000,000 reads a month for the whole account, then $0.50 per 10,000 reads.

An example

Rational, Middleby and Hoshizaki trade at what multiples, and what would that make Kuechentechnik Nord worth after a 20% private-company discount?

Your agent callsvaluation_multiplesFree*

The example business is Hansen & Voss, a restaurant-equipment wholesaler in Hamburg with 60 staff. The reply is the one the tool really gives.

With these arguments
{
  "peers": [
    {
      "name": "Rational AG",
      "market_cap": 7200,
      "net_debt": -350,
      "revenue": 1230,
      "ebitda": 330,
      "net_income": 240
    },
    {
      "name": "Middleby",
      "market_cap": 7600,
      "net_debt": 2100,
      "revenue": 3900,
      "ebitda": 880,
      "net_income": 430
    },
    {
      "name": "Hoshizaki",
      "market_cap": 5100,
      "net_debt": -900,
      "revenue": 2600,
      "ebitda": 380,
      "net_income": 210
    }
  ],
  "target": {
    "name": "Kuechentechnik Nord GmbH",
    "revenue": 18.4,
    "ebitda": 2.6,
    "net_income": 1.3
  },
  "net_debt": 3.1,
  "discount": 0.2,
  "currency": "EUR"
}
What comes back
{
  "multiples": {
    "ev_revenue": {
      "peers": [
        {
          "name": "Rational AG",
          "value": 5.569106
        },
        {
          "name": "Middleby",
          "value": 2.487179
        }
      ],
      "excluded": [],
      "n": 3,
      "min": 1.615385,
      "q1": 2.051282,
      "median": 2.487179,
      "mean": 3.22389,
      "q3": 4.028142,
      "max": 5.569106,
      "implied": {
        "metric": "revenue",
        "metric_value": 18.4,
        "enterprise_value": {
          "q1": 30.19,
          "median": 36.61,
          "q3": 59.29
        },
        "equity_value": {
          "q1": 27.09,
          "median": 33.51,
          "q3": 56.19
        }
      }
    },
    "ev_ebitda": {
      "peers": [
        {
          "name": "Rational AG",
          "value": 20.757576
        },
        {
          "name": "Middleby",
          "value": 11.022727
        }
      ],
      "excluded": [],
      "n": 3,
      "min": 11.022727,
      "q1": 11.037679,
      "median": 11.052632,
      "mean": 14.277645,
      "q3": 15.905104,
      "max": 20.757576,
      "implied": {
        "metric": "ebitda",
        "metric_value": 2.6,
        "enterprise_value": {
          "q1": 22.96,
          "median": 22.99,
          "q3": 33.08
        },
        "equity_value": {
          "q1": 19.86,
          "median": 19.89,
          "q3": 29.98
        }
      }
    },
    "pe": {
      "peers": [
        {
          "name": "Rational AG",
          "value": 30
        },
        {
          "name": "Middleby",
          "value": 17.674419
        }
      ],
      "excluded": [],
      "n": 3,
      "min": 17.674419,
      "q1": 20.980066,
      "median": 24.285714,
      "mean": 23.986711,
      "q3": 27.142857,
      "max": 30,
      "implied": {
        "metric": "net_income",
        "metric_value": 1.3,
        "equity_value": {
          "q1": 21.82,
          "median": 25.26,
          "q3": 28.23
        },
        "enterprise_value": {
          "q1": 24.92,
          "median": 28.36,
          "q3": 31.33
        }
      }
    }
  },
  "net_debt": 3.1,
  "discount": 0.2,
  "method": "Each peer's multiple, then the quartiles across peers (Excel's QUARTILE.INC). Implied values apply the first quartile, median and third quartile to the target's figure, less a 20.00% discount. Enterprise value = market cap + net debt when a peer gives no enterprise value; equity value = enterprise value - net debt.",
  "currency": "EUR"
}

Use it when

To value a company from listed peers, or to check a DCF.

What it does

Peer multiples (EV/revenue, EV/EBITDA, EV/EBIT, P/E) with their quartiles, median and mean, and the enterprise and equity value they imply for the target at the first quartile, median and third quartile, less any discount (a private-company discount, say). A peer with a negative or missing figure is left out of that multiple and listed with the reason.

What comes back

multiples: per multiple (ev_revenue, ev_ebitda, ev_ebit, pe) the peers and their values, excluded peers with the reason, n, min, q1, median, mean, q3, max and implied (enterprise_value and equity_value at q1, median and q3); net_debt, discount, not_computed and method. Every reply also carries cost_usd and balance_usd.

Inputs

NameTypeWhat it is
peersRequiredarray of objects1 to 200 items.
peers[].nameRequiredstring1 to 200 characters.
peers[].enterprise_valuenumber
peers[].market_capnumberEquity value; with net_debt it gives the enterprise value.
peers[].net_debtnumber
peers[].revenuenumber
peers[].ebitdanumber
peers[].ebitnumber
peers[].net_incomenumber
targetobject
target.namestring1 to 200 characters.
target.revenuenumber
target.ebitdanumber
target.ebitnumber
target.net_incomenumber
net_debtnumberThe target's, for the equity bridge. Default: 0.
multiplesarray of stringsAt least 1 item. One of: ev_revenue,ev_ebitda,ev_ebit,pe.
discountnumberTaken off the implied values. A decimal: 0.09 is 9%. 0 to 0.9.
currencystringShown with the figures, e.g. EUR. Nothing is converted. Up to 10 characters.

The call

Over MCP, call valuation_multiples on https://api.conecto.chat/mcp/valuation. Over REST:

Terminal
curl -X POST https://api.conecto.chat/v1/tools/valuation_multiples \
  -H "Authorization: Bearer $CONECTO_KEY" \
  -H "Content-Type: application/json" \
  -d '{"peers":[{"name":"Rational AG","market_cap":7200,"net_debt":-350,"revenue":1230,"ebitda":330,"net_income":240},{"name":"Middleby","market_cap":7600,"net_debt":2100,"revenue":3900,"ebitda":880,"net_income":430},{"name":"Hoshizaki","market_cap":5100,"net_debt":-900,"revenue":2600,"ebitda":380,"net_income":210}],"target":{"name":"Kuechentechnik Nord GmbH","revenue":18.4,"ebitda":2.6,"net_income":1.3},"net_debt":3.1,"discount":0.2,"currency":"EUR"}'

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