Factors that Cause Companies to Trade at Higher Multiples

Many professional investors value companies (how much the company is actually worth) by multiplying a company's earnings (EBITDA), revenue, or free cash flow by a number. That number is called the "multiple." The higher the multiple, the more the company is worth.

• EBITDA multiples for companies with strong growth prospects will be higher than those with weaker growth prospects
  
  
• A business is valued based on how much free cash flow it generates
  
  
• If a company has more capital expenditures, working capital, or debt service requirements than another, it may be assigned a lower value or lower multiple (more risk)
  
  The business will have to use more of the cash it generates on capital expenditures and working capital, rather than using the cash to pay down debt or distribute to owners

The media interest in my story continues, and we had a lunchtime interview with Erika Hayasaki of the Los Angeles Times. However, due to workload, we can't oblige everyone at this time:

Dear Mr. Persky,
I work in New York as a producer for TV Globo, the largest Brazilian TV. I saw your interview in CNN yesterday. I admit I haven’t read about your effort to get a job earlier this year before, but when I saw the report by CNN, I was really impressed. I’m glad you found a new position.
As international correspondents, we have been covering the financial crisis for months now, and we are trying to do that from different perspectives. Therefore, I was wondering if you’d be available for an interview to tell us your story. We work with a two-people crew (just one reporter and one cameraman) and we could meet you at your office (if possible) or even at Park Avenue, since it was the setting for your idea. The whole thing would take about 40min to 1 hour.
Please let me know if you have sometime available for us this week.

Dear Mr. Persky,
I hope this email finds you well! I work with TVBS Taiwan in New York,
the leading news channel in Taiwan. We would like to interview you for
our news channel. You have garnered a lot of interest in China as well
which we would love to discuss with you as well!! Please do let us know
if we can interview you some time this week. if yes please let us know
what day and time works best for you.
We look forward to hearing from you.

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when I saw the report by CNN, I was really impressed. I’m glad you found a new position.