Under the Valuations Section in this website there are multiples per industry and there are different kinds of multiples such as Revenue, Gross Profit, EBITDA, EBIT and Discretionary Earnings. however when looking at some teasers of some deals, the agent lists Cash Flow and then they multiply it by a multiplier to come up with the valuation. So my question is, what does Cash Flow equate to in the context of BVR industry averages; is it EBITDA or Discretionary Earnings?
Cash Flow vs EBITDA vs Discretionary Earnings
by an investor from Carnegie Mellon University - Tepper School of Business
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The DealStats database does contain stock and asset sale transactions (though ~70%+ are asset sales). You can separate those transactions and apply the multiples separately, you can convert the stock sales prices to an asset value equivalent and recalculate the multiples (BIZCOMPS does this for contributed stock sale deals), or you can restate the selling prices for your selected comparable companies using the provided purchase price allocations to include a common bundle of assets (like fixed assets and intangibles) and recalculatate the multiples. You can learn more in the Companion Guide (https://www.bvresources.com/docs/default-source/free-downloads/dealstats-companion-guide.pdf?sfvrsn=dd1cfb2_2) and on the FAQ page (https://www.bvresources.com/products/faqs/dealstats).