An investment banker is valuing a private company using public comparables. If the private company has a lower EBITDA margin but similar revenue growth to peers, which adjustment is most appropriate?

1. AApply a higher EV/EBITDA multiple than the comparable group average
2. BApply a lower EV/EBITDA multiple than the comparable group average✓ Correct answer
3. CUse the comparable group average multiple without adjustment
4. DUse a P/E multiple instead of EV/EBITDA

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