Multiples implied by precedent transactions are not relevant when considering publicly traded companies is not a valid potential reason for this discrepancy.
A corporation whose ownership is structured through shares of stock meant for free trading on a stock exchange or in over-the-counter markets is known as a public company, a publicly traded company. A publicly traded firm is a business in which the shareholders are entitled to a portion of the company's assets and earnings. A public company's ownership is divided among its shareholders in a free market through the trading of shares of stock on stock exchanges or over-the-counter (OTC) marketplaces. Many Americans make direct investments in publicly traded companies, and chances are good that any pension plan you may have or mutual fund you own will have some stock in publicly traded companies.
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