Acquirer's Multiple

In this podcast you will learn about the Acquirer's multiple, a simple deep value strategy that has been proven to outperform over the long term.

Tobias Carlisle is the author of The Acquirer's Multiple: How the Billionaire Contrarians of Deep Value Beat the Market which lays out the research of the discussed strategy.

Acquirer's Multiple:

EV/EBIT or Enterprise Value / Operating Income

Enterprise value, is the value of a company taking into account both equity holders and debt holders.

Operating income is unlevered because we do not consider the interest expense of the company.

Because both enterprise value and operating income is unlevered, its gives a rough idea of what a business owner or acquirer will pay for a company hence The Acquirer's Multiple.