Source: https://guthlabs.ai/docs/instruments/valuation-multiples-comparator/implementation/

instrument implementation / implementation-contract

# Valuation Multiples Comparator implementation

A source-bound implementation contract for Valuation Multiples Comparator; deployment and executable qualification remain separate.

Status: **VERIFIED_CLEAN**Lifecycle: **implementation-contract**

## Binding contract

This record describes what an executable surface must bind and validate. It does not claim that a public calculator, package, or production route is deployed.

**Record owner**: Guth Instruments

**Lifecycle**: verified-clean

**Evidence ID**: t4-224

**Effect**: Computation or source lookup only

## Input and validation requirements

- Division by zero occurs when EPS, sales/share, EBITDA, or book value per share is zero; the implementation needs explicit undefined/error handling rather than Infinity or NaN.

- Negative EPS makes P/E negative and typically unsuitable for ordinary multiple interpretation; negative or zero book value, sales, or EBITDA also requires an explicit labeling policy.

- EV must be defined consistently, typically as equity value plus debt plus preferred equity plus minority interest minus cash and equivalents; omitting components can make EV/EBITDA misleading.

- Period mismatches between price/EV and trailing or forward financial metrics can produce invalid comparisons; the period basis must be explicit.

- Peer deltas are undefined without a specified reference statistic such as peer mean, median, or selected peer, and without a sign convention.

- Currency and scale mismatches, especially cents versus currency units or thousands versus millions, can produce materially incorrect ratios.

## Required corrections

No binding erratum is attached to this unique-name record. Implementers must still preserve the declared units, domain, and failure behavior.

## Inspectable interface fixture

The sample below is evidence for interface and validation tests, not a production implementation.

````
{
  "inputs": {
    "price": 60,
    "EPS": 3,
    "sales/share": 24,
    "EV": 900,
    "EBITDA": 150,
    "book_value_per_share": 30
  },
  "expected_outputs": {
    "P/E": 20,
    "P/S": 2.5,
    "EV/EBITDA": 6,
    "P/B": 2
  },
  "working": "P/E = 60 / 3 = 20. P/S = 60 / 24 = 2.5. EV/EBITDA = 900 / 150 = 6. P/B = 60 / 30 = 2."
}
````

## Other records

[01**Overview**](<https://guthlabs.ai/docs/instruments/valuation-multiples-comparator/>)[02**Mechanism**](<https://guthlabs.ai/docs/instruments/valuation-multiples-comparator/mechanism/>)[04**Qualification**](<https://guthlabs.ai/docs/instruments/valuation-multiples-comparator/qualification/>)

## Sources and evidence

These pointers bind the page to evidence. They do not grant authority or collapse verification into deployment.

- `VERIFIED_LEDGER.json`

- `evidence-tranche4/tranche4-results.json`