Valuation Multiples What They Miss, Why They Differ, and the Link to Fundamentals

2026

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This report explains the limitations of valuation multiples, why they differ, and how they relate to fundamental business drivers.

* Explores the shortcomings of valuation multiples and their declining informativeness.
* Analyzes the differences between P/E and EV/EBITDA multiples and their underlying drivers.
* Connects EV/EBITDA multiples to fundamental value drivers like ROIC and growth.

Valuation, Multiples, P/E, EV/EBITDA, Fundamentals

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