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A rigorously justifiable procedure to calculate a group multiple based on multiples of separate members of the group does not exist. Academicians and practitioners use the arithmetic mean, harmonic mean, and median to calculate valuation multiples for various industries and sectors of the economy. This article offers a criterial interpretation of the arithmetic and harmonic means and considers the group multiple problem as decision making based on the criterial approach.

In the classical mean-variance finance model where investors have a relative preference for risk versus return, the authors add a new factor – the average trading volume of shares of the portfolio’s security for a specified period of time measured as a percentage of its total float number of shares – that is used to quantify the portfolio’s components based on their potential price increase. The introduced trading volume factor cannot be incorporated into the classic model by increasing the portfolio’s expected return because the price and volume correlation is weak. The modified mean-variance optimization model shows that Markowitz’s portfolio can be improved. The generalized optimal portfolio problem is formulated as a multicriteria problem. The given examples demonstrate that the offered model can be used successfully in practice.