Trucking company example:
$5mm in assets (trucks/trailers)
$750k EBITDA
Let’s say the industry trades 5x EV/EBITDA, which in this case would be $3.75mm valuation. No owner would sell below ‘break-up’ value of assets obviously.
I feel like the business should trade at asset value plus some goodwill (customers, drivers, office staff).
Do you guys agree here? Any formula to apply?
Valuing asset heavy company (trucking example)
by a searcher from University of Colorado at Boulder
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