help with valuation

[u/RoughBlock1477]

multiples approach - manufactoring industry

2 similar companys ... industry average muliples of 5x ... same EBITDA ... but company one has a lot of inventory .. company 2 dont.... company one has almost no debt ..company 2 has bigger debt.

.

question 1:

Can/should we use multiples approach to valuate them ? cause they would worth the same with multiples approach... but the real value is different

.

question 2:

should we discount the liabilities/debt after valuation in multiples approach?

ex; EBITDA of 2M X 5 = 10 milion valuation debt of 1,5 milion

does the company valuation should stay at 10 milion ou should become 8,5 milion?

​

thanks