Market multiples are the multiples based on a sample of comparable, listed companies that have not only similar sector characteristics, but also similar operating characteristics, such as ROCE and expected growth rates. Given that the multiple is usually calculated on short-term projections, the comparable companies should be listed (see Listed security); shares must be liquid and covered by a sufficient number of financial analysts.

(See Chapter 32 Capital structure and the theory of perfect capital markets of the Vernimmen)

To know more about it, look at what we have already written on this subject