If an earnings multiplier is not available for a given firm, the multiplier used in an earnings-based method of valuation of a firm is often estimated from comparable:

Question

Quizplus · Accepted Answer

If an earnings multiplier is not available, the best way to estimate it is by looking at comparable firms in the same industry or of similar size and profitability. Therefore, the multiplier should be estimated from comparable firms (Choice C).

If an Earnings Multiplier Is Not Available for a Given