Ask your own question, for FREE!
Finance 17 Online
OpenStudy (anonymous):

multiples valutation: we have to evaluate an enterprise going to make an IPO, does it make sense to find financial leverage for each comparable even if after their IPO they don't have debt any more? thanks!

OpenStudy (anonymous):

Value the business, i.e. find enterprise value. Then just subtract off the debt to find the value of the equity that you'd sell in an IPO.

OpenStudy (anonymous):

So use EV / EBITDA or EV / EBIT multiples to ignore capital structure in your multiples analysis.

Can't find your answer? Make a FREE account and ask your own questions, OR help others and earn volunteer hours!

Join our real-time social learning platform and learn together with your friends!
Can't find your answer? Make a FREE account and ask your own questions, OR help others and earn volunteer hours!

Join our real-time social learning platform and learn together with your friends!