The comparables analysis uses an average of several valuation multiples for eBay and RitchieBros. when each company was in a similar growth phase and applies them to LQDT.
Three 10-meter-long 1997 Terex TS14D motor scrapers -- machines that chew up roads for repaving -- roar past a crowd of 1, 200 in baseball caps and blue jeans at a recent RitchieBros. auction in Clinton, Wisconsin.
Moreover, we believe that LQDT resembles a mixture of eBay and RitchieBros. and therefore deserves a multiple that factors in a growth rate somewhere in between the growth rates experienced by both companies in the past.