Question

Hello, I d like to value a company using multiples, but when I loof for the updated data y find them by industries as a ratio of Equity Value (example EV/EBITDA). How can i use this multiple with may capital structure? Thank you

Answer 1

You should never find an EBITDA multiple that uses Equity Value/Market Cap... EV should represent Enterprise Value. If you're looking at a multiple such as EV/EBITDA, it should be capital structure independent, and thus, you'd apply the multiple to the relevant metric for your company and derive an Enterprise Value from that.