Valuing IPO’s using EV/EBITDA multiple in the Brazilian market
This paper verified whether the EV / EBITDA multiple of comparable firms (belonging to the same industry) are good parameters for pricing firms in their initial public offering (IPO’s). There were 116 IPO’s in the Brazilian market between 2004 and 2014. After the exclusions (financial firms, firms w...
| Main Authors: | , , |
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| Format: | Article |
| Language: | Portuguese |
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Universidade Federal de Santa Catarina
2018-12-01
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| Series: | Revista Contemporânea de Contabilidade |
| Subjects: | |
| Online Access: | https://periodicos.ufsc.br/index.php/contabilidade/article/view/52956 |
| _version_ | 1811265920625016832 |
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| author | Anatoli Dias Orlovas Ricardo Goulart Serra Liliam Sanchez Carrete |
| author_facet | Anatoli Dias Orlovas Ricardo Goulart Serra Liliam Sanchez Carrete |
| author_sort | Anatoli Dias Orlovas |
| collection | DOAJ |
| description | This paper verified whether the EV / EBITDA multiple of comparable firms (belonging to the same industry) are good parameters for pricing firms in their initial public offering (IPO’s). There were 116 IPO’s in the Brazilian market between 2004 and 2014. After the exclusions (financial firms, firms with lack of or negative information and outliers), 36 IPO’s were analyzed. In addition to the multiples of the comparable firms, it was used as explanatory variables: year dummy and variables related to value drivers (return, leverage and size). The results indicate that the multiple of comparable firms are relevant to price the firms 'going public', and the models with the mean and the median obtained better adjustment coefficient (R2). The analyzed value drivers were not significant. The year dummy was significant only for one model. The models with the NAICS' sector classification presented better adjustments than the models with the Economatica's® classification. |
| first_indexed | 2024-04-12T20:32:41Z |
| format | Article |
| id | doaj.art-67d7c2caab27468f87176189392a8215 |
| institution | Directory Open Access Journal |
| issn | 1807-1821 2175-8069 |
| language | Portuguese |
| last_indexed | 2024-04-12T20:32:41Z |
| publishDate | 2018-12-01 |
| publisher | Universidade Federal de Santa Catarina |
| record_format | Article |
| series | Revista Contemporânea de Contabilidade |
| spelling | doaj.art-67d7c2caab27468f87176189392a82152022-12-22T03:17:42ZporUniversidade Federal de Santa CatarinaRevista Contemporânea de Contabilidade1807-18212175-80692018-12-011537345110.5007/2175-8069.2018v15n37p3430889Valuing IPO’s using EV/EBITDA multiple in the Brazilian marketAnatoli Dias Orlovas0Ricardo Goulart Serra1Liliam Sanchez Carrete2Fundação Escola de Comércio Álvares Penteado (FECAP)Professor do MPA da Fundação Escola de Comércio Álvares Penteado (FECAP), Professor da Pós-graduação Lato Sensu do Instituto de Ensino e Pesquisa (Insper) e Professor da Graduação do Departamento de Administração da Universidade de São Paulo (FEA/USP)Professor do Departamento de Administração da Universidade de São Paulo (FEA/USP)This paper verified whether the EV / EBITDA multiple of comparable firms (belonging to the same industry) are good parameters for pricing firms in their initial public offering (IPO’s). There were 116 IPO’s in the Brazilian market between 2004 and 2014. After the exclusions (financial firms, firms with lack of or negative information and outliers), 36 IPO’s were analyzed. In addition to the multiples of the comparable firms, it was used as explanatory variables: year dummy and variables related to value drivers (return, leverage and size). The results indicate that the multiple of comparable firms are relevant to price the firms 'going public', and the models with the mean and the median obtained better adjustment coefficient (R2). The analyzed value drivers were not significant. The year dummy was significant only for one model. The models with the NAICS' sector classification presented better adjustments than the models with the Economatica's® classification.https://periodicos.ufsc.br/index.php/contabilidade/article/view/52956IPOEV/EBITDAAvaliação por múltiplosAvaliação de empresas |
| spellingShingle | Anatoli Dias Orlovas Ricardo Goulart Serra Liliam Sanchez Carrete Valuing IPO’s using EV/EBITDA multiple in the Brazilian market Revista Contemporânea de Contabilidade IPO EV/EBITDA Avaliação por múltiplos Avaliação de empresas |
| title | Valuing IPO’s using EV/EBITDA multiple in the Brazilian market |
| title_full | Valuing IPO’s using EV/EBITDA multiple in the Brazilian market |
| title_fullStr | Valuing IPO’s using EV/EBITDA multiple in the Brazilian market |
| title_full_unstemmed | Valuing IPO’s using EV/EBITDA multiple in the Brazilian market |
| title_short | Valuing IPO’s using EV/EBITDA multiple in the Brazilian market |
| title_sort | valuing ipo s using ev ebitda multiple in the brazilian market |
| topic | IPO EV/EBITDA Avaliação por múltiplos Avaliação de empresas |
| url | https://periodicos.ufsc.br/index.php/contabilidade/article/view/52956 |
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