Median Versus Mean Multiples

This problem practices relative valuation judgment, especially how to choose an appropriate market multiple when comparing a target company to public peers. It tests whether you understand that valuation outputs can be distorted by unusual companies in the peer set, and that the choice between median and mean affects how much weight those extremes receive.

Interviewers ask this because in banking, the quality of the peer set matters as much as the calculation itself. A strong answer shows you can think about data quality, comparability, and robustness, and that you know when a central tendency measure gives a cleaner valuation benchmark.