In comparing a company that uses cashiers to one that uses vending machines, which has the lower EV/EBITDA multiple?

The vending machine company is likely to have a lower EV/EBITDA multiple due to several key factors.

Firstly, companies that utilize vending machines typically operate with lower overhead costs compared to businesses that employ cashiers. The operational efficiency and lower labor costs associated with vending machines often lead to higher profit margins, positively influencing EBITDA, which is a key component in determining the EV/EBITDA multiple.

Moreover, vending machine businesses may appeal to investors as they can operate with minimal human intervention, providing more consistent revenue generation opportunities. This can enhance their valuation perception, reflecting a more attractive multiple compared to traditional cashier-operated businesses which might face more variable costs associated with staffing, training, and employee turnover.

Additionally, cashiers can imply a more labor-intensive model, making the business subject to fluctuations in labor costs and other associated risks. Such factors could put upward pressure on the operational costs and potentially reflect a lower EBITDA figure, leading to a higher multiple when compared against the streamlined operations of vending machines.

Thus, the nature of the vending machine operations emphasizes efficiency and cost-effectiveness, contributing to a lower EV/EBITDA multiple in comparison to businesses reliant on cashiers.