---
name: "valuation_multiples"
area: "valuation"
title: "Value a company by trading multiples"
price: "free"
method: "POST"
url: "https://api.conecto.chat/v1/tools/valuation_multiples"
mcp_server: "https://api.conecto.chat/mcp/valuation"
auth: "Authorization: Bearer <conecto_sk_ key>"
docs_url: "https://conecto.chat/tools/valuation/valuation_multiples"
---

# Value a company by trading multiples (`valuation_multiples`)

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

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.

Price: Free up to 1,000,000 reads a month for the whole account, then $0.50 per 10,000 reads. A call that fails costs nothing.

## Use it when

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

- For a value from forecast cash flows, use [valuation_dcf](https://conecto.chat/tools/valuation/valuation_dcf.md).

## Say this to your agent

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

## Inputs

| Name | Type | Required | Description | Allowed values | Default |
|---|---|---|---|---|---|
| `peers` | array of objects | yes | 1 to 200 items. |  |  |
| `peers[].name` | string | yes, in each item of `peers` | 1 to 200 characters. |  |  |
| `peers[].enterprise_value` | number | no |  |  |  |
| `peers[].market_cap` | number | no | Equity value; with net_debt it gives the enterprise value. |  |  |
| `peers[].net_debt` | number | no |  |  |  |
| `peers[].revenue` | number | no |  |  |  |
| `peers[].ebitda` | number | no |  |  |  |
| `peers[].ebit` | number | no |  |  |  |
| `peers[].net_income` | number | no |  |  |  |
| `target` | object | no |  |  |  |
| `target.name` | string | no | 1 to 200 characters. |  |  |
| `target.revenue` | number | no |  |  |  |
| `target.ebitda` | number | no |  |  |  |
| `target.ebit` | number | no |  |  |  |
| `target.net_income` | number | no |  |  |  |
| `net_debt` | number | no | The target's, for the equity bridge. |  | `0` |
| `multiples` | array of strings | no | At least 1 item. | `"ev_revenue"`, `"ev_ebitda"`, `"ev_ebit"`, `"pe"` |  |
| `discount` | number | no | Taken off the implied values. A decimal: 0.09 is 9%. 0 to 0.9. |  |  |
| `currency` | string | no | Shown with the figures, e.g. EUR. Nothing is converted. Up to 10 characters. |  |  |

## Example

Written for Hansen & Voss, a restaurant-equipment wholesaler in Hamburg with 60 staff.

MCP: call `valuation_multiples` on the MCP server `https://api.conecto.chat/mcp/valuation` with these arguments:

```json
{
  "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"
}
```

REST:

```bash
curl 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"}'
```

## Response

```json
{
  "call_id": "5f0c8a2e-3b7d-4c1e-9a64-2d8e1f7b0c93",
  "tool": "valuation_multiples",
  "status": "succeeded",
  "replayed": false,
  "cost_usd": "$0.00",
  "balance_usd": "$19.75",
  "result": {
    "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": 30.0
          },
          {
            "name": "Middleby",
            "value": 17.674419
          }
        ],
        "excluded": [],
        "n": 3,
        "min": 17.674419,
        "q1": 20.980066,
        "median": 24.285714,
        "mean": 23.986711,
        "q3": 27.142857,
        "max": 30.0,
        "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"
  }
}
```

`result`: 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.

## Errors

This tool has no errors of its own.

The refusals every tool can give (401 key, 402 balance, 429 limits) are on the errors page: https://conecto.chat/docs/errors.md

## Related

- [valuation_dcf](https://conecto.chat/tools/valuation/valuation_dcf.md): A DCF valuation from free cash flows and a WACC: present values, terminal value, enterprise and equity value, and a sensitivity grid. Free up to 1,000,000 reads a month.
- [valuation_wacc](https://conecto.chat/tools/valuation/valuation_wacc.md): The WACC from the risk-free rate, the market premium and a beta relevered from peers, with each step written out. Free up to 1,000,000 reads a month.
- [valuation_rates](https://conecto.chat/tools/valuation/valuation_rates.md): Today's risk-free curve and its recent average from the Bundesbank, the ECB or the US Treasury, as decimals. Free up to 1,000,000 reads a month.
- [valuation_fx](https://conecto.chat/tools/valuation/valuation_fx.md): Amounts converted between currencies at the ECB's euro reference rates, on a date or at a past year's average. Free up to 1,000,000 reads a month.
- [valuation_lbo](https://conecto.chat/tools/valuation/valuation_lbo.md): A buyout financed with debt, year by year: sources and uses, each debt tranche, the exit, MOIC, IRR and an IRR grid by entry and exit multiple. Free up to 1,000,000 reads a month.
- [valuation_benchmark](https://conecto.chat/tools/valuation/valuation_benchmark.md): The target's KPIs against its peers: quartiles, percentile, gap to the median and whether each is a strength or a potential. Free up to 1,000,000 reads a month.
- [valuation_scores](https://conecto.chat/tools/valuation/valuation_scores.md): Altman, Piotroski and Beneish scores from a company's figures, and whether it is growing, mature or distressed. Free up to 1,000,000 reads a month.
- [valuation_forecast](https://conecto.chat/tools/valuation/valuation_forecast.md): Model forecasts with 80% and 95% intervals for revenue, EBITDA or monthly sales, with a confidence label and the plan checked against the range. Free up to 1,000,000 reads a month.
- [valuation_beta](https://conecto.chat/tools/valuation/valuation_beta.md): Betas of listed peers from closing prices the business gives, with R squared, the t-statistic and the unlevered beta. Free up to 1,000,000 reads a month.
- [valuation_football_field](https://conecto.chat/tools/valuation/valuation_football_field.md): The valuation ranges side by side, with the overall range, the overlap, markers and a slide for the deck. Free up to 1,000,000 reads a month.