Valuation Framework

Fair Valuation Builder

The simulator estimates two components:

The Fair EV/EBITDA multiple for a business, based on expected business performance and returns expectation.
The premium or discount to be expected vs. its peers and a zero-capital business, for its working-capital and physical-capital structure.

Target Company

The company you are valuing. Enter one ticker to pull its live traded multiple and capital metrics, on the same basis as the peer set. Its traded multiple sets the Market EV/EBITDA reference below, and its logo appears at the top left. Metrics are outputs, not editable.

Enter the ticker of the company you are valuing.

Business & Required Return

LTM / CurrentTerminal

Revenue Growth10.0%3.0%

EBITDA Margin15.0%15.0%

Years to Terminal10

Required Return (Equity)15.0%

Net Debt / EBITDA0.0x

Cost of Debt, pre-tax8.0%

Tax Rate25%

Terminal growth must stay below the required return.

Derived

Revenue CAGR to Terminal—

FCFF Margin——

Market

Market EV/EBITDA25.0x

Market P/E20.0x

Multiple Basis

= NTM × (1+g₁)

Capital Intensity

LTM / CurrentTerminal

NWC Days, Avg(30d)(30d)

Asset Turnover24.6x24.6x

D&A Rate, % of NFA20%

SBC, % of Revenue0.0%

Float Interest Rate, p.a.0.0%

Derived

Capex, % of Revenue——

D&A, % of Revenue——

ROCE, pre-tax——

ROCE, post-tax——

Fair EV / EBITDA

—

Fair P / E

—

Market-Implied Return

—

Market-Implied Growth

—

WACC

—

Terminal EV / EBITDA

—

Fair EV / FCFF

—

Terminal EV / FCFF

—

Decomposition of the Fair Multiple

—

Peer Benchmark

Fair-relative multiple = peer-median EV/EBITDA + the capital-quality differential vs the median peer. India from Screener (consolidated), US from Yahoo. US EV and net debt are net of cash; India uses gross borrowings, as Screener does not separate cash on the consolidated view. Metrics are outputs, not editable.

Add a peer by ticker (e.g. HINDUNILVR, NESTLEIND, PG). Metrics are fetched on entry.

Your company vs the median peer

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Fair Multiple Sensitivity

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X axis Y axis

Notes and Conventions

EBITDA is stated post-rental (rent/lease charged above EBITDA; pre-Ind-AS-116). It is not added back.
Working-capital days: average balance, on sales (average NWC ÷ revenue × 365), applied to the company and all peers.
Negative working capital (supplier/customer float) is valued two ways, which are distinct rather than double-counted: the working-capital line credits the cash the float releases as the business grows (the change in NWC), while the Float Interest Rate credits the interest earned on the outstanding float balance it holds — a return FCFF, being unlevered, does not otherwise capture. Interest is computed on the average annual float balance, after tax, and only where working capital is negative. Set the rate to 0 to switch this effect off. Because peer EV is taken net of cash, the float balance is not also sitting inside the traded multiple.
Asset turnover and the D&A rate: on the average net-fixed-asset base (opening and closing). Capex is derived, not input: maintenance (the D&A charge) plus the build for that year's growth, given the turnover path.
Peer growth: 3-year CAGR is the latest reported year over the year three prior; LTM growth is the latest reported year over the prior year — an annual basis applied consistently to India and US (a true trailing-twelve-month basis needs quarterly data). Revenue and EBITDA on a reported basis (Screener operating profit for India; Yahoo EBITDA for US).

Fair Valuation Builder

Target Companyi