Comparison of Prof. Damodaran's website and the Orbis database as sources for selecting market multiples for company valuation

The thesis is focused on the comparison of the web of Prof. Damodaran and Orbis from the point of view of a valuer to determine the market multipliers in business valuation. The comparison is made in a practical way of developing a proprietary methodology to determine narrowly defined peer-groups through the Orbis database and comparing the measured values with the sectoral Prof. Damodaran's industry averages. Practically, it means dividing the companies in Prof. Damodaran's industry into sub-groups of comparable companies. This methodology is based on the principle of the link between the EV/EBITDA multiplier and the company's fundamental factors of value creation and other factors defined in the theoretical part of the thesis that affect the accuracy of the market multiplier. The results of the analyses assess the advantages and disadvantages of both data sources and, using the six industries studied, suggest trends in the association between EV/EBITDA and size, risk, growth and profitability of businesses.