What are the best mutiples one should use to value a Spirit(wine) maker company and a media & entertainment company on relative valuation. Please tell with reason.
i think wine would just be traditional multiples like EV/EBITDA (company) and P/E (equity). For media and entertainment you need to be more specific, what type of media/entertainment company? If there are subscribers involved EV/Subscribers is one, but thats more telecom applicable. EV/EBITDAR for certain entertainment (like a hotel/casino) due to rent expenses from operating leases is good to smooth out the variances in some companies reporting more operating vs capital leases (operating leases would hit EBITDA so you add the rent expense back so they are comparable with peers that capitalize more).
@mark thanks for your response. The media company is in the business of television brodcasting,entertainment and production. Its in kind of same business like Walt Dishney. What multiple do you think would be best?