PPP Business Plan 09 03

value of the company
The synthetic methods of the market
Alongside the above methods (also called “analytical”), the doctrine and practice identify estimation methods called “synthetic”,
based on market indicators and multiples, which are used for determining the value based on the observation of
certain parameters (e.g. Price / Earnings) identified within companies, and primarily used on regulated markets, providing
the basis for their entire sector.
Sometimes these are used in the evaluations of inter-relations, in negotiations (comparables) in case of companies operating
in the same sector, bearing similar characteristics (relative to cash flow, sales, costs, etc.).
Among the empirical methods the EBITDA multiplier is also a widely applied method, in which the net debt must be added
algebraically, in order to switch from the estimated enterprise value (total value of the company) to the equity value (net
asset value, which expresses the adequacy of the compensation for the sale to members of the company that are selling the
business unit).
With specific reference to hotel companies, when choosing the multiplier or comparable transactions, among others the
following items need be taken into account:
• the type of clientele;
• the value of the structures;
• the services offered;
• the location;
• the state of maintenance;
• the unit price per room / bed;
• the employees;
• the quality of the kitchen;
• average period of accommodation.
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