A model, not a table
Every published band comes out of the same model: reference multiple times DACH discount, scaled to size class. Nothing is lifted from a third-party table.
01 PrincipleMethodology
How the range is built
Five steps take listed-company market levels to an indicative equity-value range for a privately held firm. Each step has one job. No published band is a copied table.
The derivation
Five steps to the range
From the reference multiple to an indicative equity-value range, in the order the calculation runs.
The reference multiple
The starting point is the reference multiple: the EV/EBITDA level of listed European companies by sector, published each year by Aswath Damodaran (NYU Stern) and free to use. The shared benchmark keeps every sector on the same footing, and it still holds where a segment's evidence is thinner. It is a starting point for the derivation, not a verdict on the company.
The DACH discount
Shares in a privately held company do not change hands as freely as those of a listed group, and so they trade at a discount. That discount, sector-specific and derived from the data, sits as a factor of its own: the DACH discount. Reference multiple times DACH discount sets the base band for a privately held DACH company.
The size and quality factors
A size factor scales the band to the company's size class, so size is counted exactly once. Within the range, three factors then set the position: the EBITDA trend, owner dependence, and the share of recurring revenue. Their effects combine multiplicatively and are capped overall, so no single factor can dominate the range.
The indicative range
The calculation runs on the EBITDA multiple as the primary method, with the revenue multiple as a plausibility check. The result is an indicative range, not a single value. A single value would claim a precision that is not there. Where a sector's evidence is thinner, the range comes out wider. It is not narrowed by hand.
The bridge to equity value
The final step is the bridge: enterprise value minus net debt gives equity value, the figure that actually matters to the owner. Cash in excess of financial debt raises it accordingly. The range is stated as a low, a mid, and a high.
PreviewThis application runs as a preview release: the multiple ranges are continuously calibrated and refined against current data. Results are preliminary and indicative.