To calculate your transaction multiple, you take some measure of value and divide it by some measure of value driver Good examples would be enterprise value on the top and EBIT/EBITDA on the bottom Alternatively you could have share price on the top and the bottom you could have earnings per share Remember, these must be consistent. So if I've got enterprise value at the top (remember that's your net operating assets) And on the bottom you've got EBIT or EBITDA, which approximates for your operating profit So net operating assets and operating profit If you've got share price on the top, you want earnings per share on the bottom Remember they're both consistent share price, earnings per share To give a little bit more detail for that value figure or equity to enterprise value bridge adjustments Must be made based on latest balance sheet data available at announcement It's the announcement date information that we're interested in If you do have market value data available instead, then we should use that But it's at announcement date we want, not completion date and certainly not after Exactly the same for the value driver, we're looking for the last 12 months up to the deal announcement So EBIT last 12 months up to deal announcement or net income to get your earnings per share for the last 12 months up to deal announcement