which multiple although we may rely on a number of different multiples in our trading comps analysis. It can be helpful to summarize what characteristics we would look for in peer companies when using certain multiples, but also to look at which multiples are particularly useful in certain situations.

Before looking at each multiple. It's important to remember that all multiples analysis is underpinned by the need for peer companies that have similar growth return and risk expectations. Typically this comes from looking at companies that operate in the same sector and in similar markets. P ratios are the most widely used multiples for public companies as they're quick and easy to calculate because PE ratios are Equity multiples. It is absolutely critical that we ensure that peer companies have similar levels of Leverage since leverage differences will distort PE ratios. This makes PE ratios particularly useful when we're valuing mature companies as mature companies tend to gravitate towards a similar capital structure. In addition since PE ratios use post tax earnings, so they're not distorted by tax differences. We're more likely to use PE ratios if we have Global comps in our peers. Easy to ebit is also widely used as a multiple. Although it's slightly more complex to calculate than PE as it requires us to identify all the material components in the company's capital structure because ebit is a pre-tax earnings metric. It is really important that peer companies have similar tax rates as this will otherwise distort and multiples EV multiples are unaffected by leverage. And therefore Evie to ebit is particularly useful. When analyzing less mature Industries where companies are more likely to have different levels of Leverage Evie to ebit is also useful for domestic comps where tax rates are less likely to differ. Easy to ebitdar is a further important multiple when using Evita it is particularly important that we select comps with a similar Capital intensity because ebitdar ignores depreciation and amortization which could distort and multiples. However, if we have comps with similar Capital intensity particularly in the same sub sector we don't need to worry about this. In fact ev2ebit dot is particularly useful if some of the comparable companies have recently been through m&a this is because m&a accounting inflates depreciation and amortization which could distort PE and EV to e bit multiples whilst Evie to ebitdar cuts through these accounting effects. Easy to sales is the final key multiple years by analysts. When using Evita cells, it's particularly important that we select comps with similar margin expectations. Otherwise margin differences will distort the multiples easy to sales is particularly useful when looking at close comps in sectors that have very volatile or negative earnings this applies to cyclical Industries or companies which are going through turnaround.

One final thing to remember is that if growth rates currently differ but are expected to converge. We would put more Reliance on the forward multiples for each of these.