Which result is typically achieved when using median multiples instead of average multiples?

Using median multiples instead of average multiples tends to lower the impact from outliers in the data set. The median provides a more robust measure of central tendency, especially in the presence of extreme values, which can skew the average. By focusing on the middle value of the dataset, the median effectively filters out those extremes and thus offers a valuation that is likely more reflective of the typical market condition, especially when dealing with highly variable or skewed data, such as valuations across different companies or industries.

In contrast, conditions where averages might be significantly affected by a few outlier values could lead to overestimating or underestimating the valuation of a company. Therefore, using the median helps mitigate these risks and often results in a more stable and reliable basis for valuation assessments.