September, 2016
Tedd Powers, Senior Consultant, Fisher International
Because a valid valuation of any business is complex and time consuming, many managers, owners and analysts fall into the trap of using a “multiple” approach as a valuation metric or comparing EBITDA margins of competing companies to draw conclusions about how effectively they are being run. This makes things easy but it also makes them completely wrong. Fisher’s Tedd Powers considers how this tendency works to the detriment of the paper industry and can obscure the true drivers of enterprise value.
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