PT - JOURNAL ARTICLE AU - Daniel Yanushevsky AU - Rafael Yanushevsky TI - Is the Arithmetic or Harmonic Mean the Best Valuation Estimate? AID - 10.3905/joi.2016.25.2.090 DP - 2016 May 31 TA - The Journal of Investing PG - 90--94 VI - 25 IP - 2 4099 - https://pm-research.com/content/25/2/90.short 4100 - https://pm-research.com/content/25/2/90.full AB - A rigorously justifiable procedure to calculate a group multiple based on multiples of separate members of the group does not exist. Academicians and practitioners use the arithmetic mean, harmonic mean, and median to calculate valuation multiples for various industries and sectors of the economy. This article offers a criterial interpretation of the arithmetic and harmonic means and considers the group multiple problem as decision making based on the criterial approach.TOPICS: Quantitative methods, analysis of individual factors/risk premia