Valuation : Question 1
What multiples should be used for valuing a brokerage firm (financial intermediation only – broking with no on-line business): enterprise value on the number of clients, DCF or NAV?

Customer value multiples are to be used with great caution, since if they are to be of relevance, earnings per customer must be equal, which is rarely the case, as can be seen from the wide disparity of these types of ratio within the same sector. At the very best, it provides a bracket, which will almost certainly have to be narrowed using other criteria.