multiple vs multiplier - Is it sometimes interchangeably used?

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Seeking truth

Member
Chinese
Hello,

I have this sentence when viewing a valuation report. It says,

This can be done either by using a discounted cash flow approach or by applying a multiple derived from the market to a maintainable profit figure.

Somehow, I feel "multiple" is better changed to "multiplier"? Am I right or right?
Is it possible that the world "multiple" here is misused?

I find an explanation of the two words' difference.

"
Multiplier is a related term of multiple.

As nouns the difference between multiplier and multiple
is thatmultiplier is (arithmetic) a number by which another (the multiplicand) is to be multiplied while multiple is (mathematics) a number that may be divided by another number with no remainder. "

From the context, I think "multiplier" fits here better? Am I right? Besides, in this report, the writer repeatively used this word "multiple" in similar usages.
 
  • Pertinax

    Senior Member
    BrE->AuE
    I'm not sure how common it is in accounting to use "multiple" in this way, but it certainly looks wrong from a mathematical perspective. I would use "multiplier".
     

    Uncle Jack

    Senior Member
    British English
    I think I must have seen it often enough not to be surprised at its use here. To me, you you are right; it is wrong and should be multiplier. Possibly it is AmE usage.
     
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