The similar company method is a method of calculating the stock price of the target company from the stock price and financial indicator of a listed company that is similar in scope and business details to the target company. Specifically, there are PBR method, PER method, EBITDA method, etc. First of all, PBR is the share price net asset multiplier, that is, the stock price divided by the net asset per share. If PBR is lower than 1 it seems that the theoretical view that the market value is higher than the value of continuing the company. On the other hand, if it is higher than 1, it is considered that the market is evaluating goodwill, which is a value other than asset liabilities. PER refers to the share price profit ratio, that is, the stock price divided by the net income per share. It is one of the most representative indices among indicators to measure the adequacy of the stock price level. In general, the higher the PER is, the higher the stock price is, the higher the profit is. On the other hand, the lower the PER, the lower the stock price is. A company with a high growth rate tends to have a high PER. EBITDA stands for EBIT + Depreciation & Amotization and refers to EBIT plus depreciation expenses.
M & A will objectively sell the company based on similar contents
The similar company method is used as an index to calculate the value of the company when considering the sale of the company, by making statistically similar tax contents and business contents developed by the target corporation It is a method of calculating the value as M & A. M & A is a term collectively meaning acquisition, sale and merger of a company, and it is a method to objectively sell a company based on similar contents as described above. Considering the similar company sale, if the value of the stock price is low, the evaluation will be lower in proportion to it. There is a method called the net asset method as a calculation method that can easily calculate while recognizing and grasping the evaluation from various viewpoints of company selling under the similar company law. This calculation method itself is developed as a method that can be easily dealt with by anyone, and the contents to be considered are excellent in objectivity.