{
  "docId": "019f6b8f-756e-76af-802b-17f806bd055d",
  "docSlug": "jarvis-valuation-multiples-primer",
  "documentTitle": "valuation multiples primer",
  "authorId": "valuation-multiples-primer",
  "authorName": null,
  "documentKindSlug": "deck",
  "documentKindLabel": "Deck",
  "sourceTypeSlug": "investor_relations",
  "sourceTypeLabel": "Investor relations",
  "presentationDate": null,
  "orientation": null,
  "aspectRatio": null,
  "pageNumber": 16,
  "pageCount": 47,
  "prevPage": 15,
  "nextPage": 17,
  "slideType": "other",
  "function": "present_framework",
  "density": "overcrowded",
  "nDataPoints": 8,
  "notes": "The slide uses mathematical formulas to demonstrate how ROE, cost of equity, and growth rates impact P/E multiples.",
  "elementsJson": null,
  "metadataConfidence": 0.95,
  "imagePath": null,
  "slideHref": "/slides/019f6b8f-756e-76af-802b-17f806bd055d/16",
  "deckHref": "/decks/019f6b8f-756e-76af-802b-17f806bd055d",
  "deckJsonHref": "/decks/019f6b8f-756e-76af-802b-17f806bd055d.json",
  "deckAnchorHref": "/decks/019f6b8f-756e-76af-802b-17f806bd055d#slide-16",
  "components": [
    {
      "bbox": {
        "h": 0.07,
        "w": 0.2,
        "x": 0.07,
        "y": 0.445
      },
      "kind": "callout",
      "text": "All things equal, finite growth means a lower multiple than in the perpetual-growth case",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "7f0334b8-5702-4cb9-b786-be4ac9a4eecd",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.2,
        "x": 0.07,
        "y": 0.315
      },
      "kind": "callout",
      "text": "Surplus return over cost of capital generates value; higher growth = more value",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "95350224-8f94-419c-b416-25947ce0efdb",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.2,
        "x": 0.07,
        "y": 0.165
      },
      "kind": "callout",
      "text": "Fair value multiples should be based on = 1/cost of capital",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "dfa018e2-e4a3-483e-8f25-091903c7fb59",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.6,
        "x": 0.33,
        "y": 0.815
      },
      "kind": "list",
      "text": "Two-stage model, value added both stages: The formula can be further extended to allow for value-adding growth in the perpetuity or second stage.",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "3ef6e874-7ceb-4d93-910d-403bb805a65c",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.6,
        "x": 0.33,
        "y": 0.165
      },
      "kind": "list",
      "text": "Simple model, no value added: Suppose you are in investor with a required return on equity (cost of equity) of 10%...",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "586cfb30-2449-4fde-af27-e32a9537561f",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.6,
        "x": 0.33,
        "y": 0.445
      },
      "kind": "list",
      "text": "Two-stage model, value added in first stage: Now let's assume that instead, the company grows at 5% pa but for ten years only...",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "898b1c4b-18b1-475e-9e2f-4cb034f99c61",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.6,
        "x": 0.33,
        "y": 0.315
      },
      "kind": "list",
      "text": "Simple model, value added: Now consider a company with a return on equity of 12% and a growth rate of 5% to perpetuity...",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "e5c279da-83e6-401f-ac45-03713b536c8d",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.02,
        "w": 0.3,
        "x": 0.07,
        "y": 0.05
      },
      "kind": "title",
      "text": "Valuation Multiples: A Primer",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "a6bdcebb-7eb2-4b87-8d1b-5b30b78c6608",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [
    {
      "name": "Waterfall chart",
      "slug": "waterfall-chart",
      "agent": null,
      "layer": "slide",
      "matchId": "1c0980a8-2cb1-4a4f-a673-4eb3e8c3427d",
      "evidence": "list/bullet: Two-stage model, value added both stages: The formula can be further extended to allow for value-adding growth in the perpetuity or second stage.",
      "confidence": 0.6
    }
  ],
  "frameworks": [
    {
      "name": "dcf",
      "slug": null,
      "matchId": "a785787b-fe92-475d-9fbb-28ffbc2e5d7c",
      "evidence": "The slide explicitly mentions 'discounted cash flow calculation as a multiple'.",
      "confidence": 1
    }
  ],
  "arcBeats": [],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}