When calculating comparable multiples, what percentiles are typically assessed?

The correct answer involves assessing various percentiles—0%, 25%, 50%, 75%, and 100%—when calculating comparable multiples. This methodology allows analysts to obtain a comprehensive view of the data by identifying how the multiples are distributed across a range of comparable companies.

By using these percentiles, one can capture a full spectrum of valuation, from the lowest to the highest. The 0th percentile provides insight into the least-valued companies, the 25th percentile allows understanding of the lower quartile, and the 50th percentile gives the median, representing the midpoint of the data set. The 75th percentile highlights the upper quartile, while the 100th percentile reflects the highest value in the data.

This approach is crucial in valuation analyses because it helps to mitigate the influence of outliers and provides a more balanced view of the market multiples, which is particularly useful in sectors where valuations can vary significantly.

Other options do not cover the full range of percentiles needed for a robust analysis. For instance, the second option only considers lower percentiles and stops well short of capturing the necessary higher percentiles, while others fail to provide a comprehensive range to assess valuation effectively.