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Private Firm Valuation Using Multiples: Can Artificial Intelligence Algorithms Learn Better Peer Groups?

| Allgemeine News

Article by Timotej Jagrič, Dušan Fister, Stefan Grbenic and Aljaž Herman.

The authors analysed the performance of AI in the composition of peer groups for transaction multipliers using an artificial neural network in the form of a self-organising map algorithm.

"Since there exists no universally applicable set of closed and complementary rules on selection criteria due to the complexity and the diverse nature of firms, this research exclusively examines unlisted companies, rendering direct comparisons with existing studies impractical. To address this, we developed a bespoke benchmark model through rigorous regression analysis."

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