Enterprise Value, Multiples, and Comparable Companies
Free FINRA Series 79 (Investment Banking Representative) lesson in Collection, Analysis and Evaluation of Data. 19 min read, ~2,867 words.
Enterprise value = market cap + total debt + preferred + minority interest − cash and equivalents; it is the value of the whole operating business, capital-structure neutral. EV pairs with pre-interest, whole-firm denominators (EBITDA, EBIT, sales); equity value (price) pairs with after-interest, per-share denominators (net income, book value, equity...
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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Check Your Understanding
- Exam Shortcuts
Learning objectives
- A5
- A6
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