My understanding is that their are industry standards. A general industry standard multiple is 20. But for the lumber industry, the industry standard is 10. I do not know what the industry standard is for the medical industry, medical supply industry, medical procedure industry, pharmaceuticals, etc. Do you know where one can get that information?
The internet (Yahoo, aol, csco, etc.) I am sure can use an industry standard of 50 (or higher?).
Anyway, this is something I am interested in learning, so if you can point me to a site that gives those industry standards, I would be grateful. Or is it that the answer is - dont use a standard, use the projected figures from each individual company. Then, in that case, as PLC is supposed to increase their earnings enormously in the next year, would a higher multiple be indicated?
Charger |
