Exploring complex causal relationships between market valuation multiples and various company drivers

This project focuses on the accuracy of company valuations using the market multiples method by exploring the factors and their combinations that influence valuation multiples, which are indicators used to estimate a company's market value. The goal is to identify which factors (alone or in complex configurations) have the most significant causal impact on valuation accuracy, thereby aligning the estimated value more closely with the actual market value. The research also addresses the subjectivity involved in selecting comparable companies, which is often based on industry classification. By investigating the causal relationships between valuation multiples and selected factors using innovative causal methods, the aim is to provide a more objective basis for the valuation process.