Sector

Multiple Used

Rationale

Cyclical Manufacturing

PE, Relative PE

Often with normalized earnings

Growth firms

PEG ratio

Big differences in growth rates

Young growth firms w/losses

Revenue Multiples

What choice do you have?

Infrastructure

EV/EBITDA

Early losses, big DA

REIT

P/CFE (where CFE = Net income + Depreciation)

Big depreciation charges on real estate

Financial Services

Price/Book equity

Marked to market?

Retailing

Revenue multiples

Margins equalize sooner or later