A Forgotten Statistical Concept Tells Why Your Multiple May Be Wrong

Business Valuation UpdateVol. 20 No. 11
November 2014
Robert M. Dohmeyer, ASA
Herbert Kierulff, Ph.D.


In 1885, Sir Francis Galton published a breakthrough treatise entitled Regression Toward Mediocrity in Hereditary Stature. In it, he demonstrated that the children of very tall or very short people tended toward average over time. Galton interpreted this ...