Do Damodaran's Multiples Value a Company Accurately? Evidence from Germany

The article examines the market valuation approach using industry multiples as this method has recently attracted increasing interest from appraisers. It investigates whether constructing one’s own for company which are based on a provides better results than Damodaran’s in terms of resulting accuracy. study uses sample 162 German companies publicly traded 2010–2019 and analyses some most frequently adopted multiples: EV/EBITDA, P/BV P/E. Moreover, presented may guide appraisers selecting appropriate approach. Based statistical error analysis, prove accuracy own-built compared to multiples. Nevertheless, is limited listed should not be relied upon with respect other European markets. Furthermore, its scope only 15 industries by Damodaran subsequently included test sample.