Calculate performance and valuation-driven equity changes despite evolving valuation metrics (i.e., going from pre-revenue to a revenue multiple to an EBITDA multiple).
Module Category: Analysis Tactics and Techniques
Key Concept: It is not uncommon for a company’s valuation basis to change during a holding period. For example, a revenue multiple might work for the first part of a hold, but then an EBITDA multiple becomes more appropriate as a company matures. In such cases, value drivers can be measured by breaking the hold into distinct phases that represent the different valuation bases.