Book value multiplier

The book value multiplier or the book value-market value ratio is an economic key figure for company valuation and is expressed by the ratio of company value to the book value of a company. The company value results from a company valuation as the present value of the future cash flows expected by the investors . The book value corresponds to the value of the assets in the balance sheet . Both values ​​can be calculated gross (equity and debt) or net (equity only).

${\displaystyle {\text{Buchwertmultiplikator}}={\frac {\text{Unternehmenswert}}{\text{Buchwert}}}}$

An exact company valuation is not yet possible with the book value multiplier alone. However, it is often used by analysts or auditors to assess the company value for the company to be valued. For this purpose, so-called peer groups, i. H. comparable companies (same industry, number of employees, turnover, asset structure, etc.), necessary.

literature

• Mandl / Rabel (1997): Company Valuation: A Practice-Oriented Introduction

Individual evidence

1. ^ Inka Gläser, Andreas Löffler: A note on the relation between book value and market value of firms. Retrieved August 11, 2015 .