Answer
The top 5 factors that can explain the variation in observed P/S ratio in transactions include the size, prevailing industry valuation, the term spread in the economy, leverage of the transaction, and the labour intensity of the private company. Our other factors also capture statistically significant variation in the observed P/S ratios, and because of our use of a dynamic model, the explained effects also vary over time.
Further Reading
More details on our factor selection, their explanatory power, and economic effects are available here.