Walter Eugene Lord

POC 6: Managerial Excellence: The Driver of Firm Value

INTRODUCTION – PART 1 All the previous Ports of Call have provided snapshots of concepts that impact firm value. These are technical in nature and application, which leads to the use of a firms EBITDA as a surrogate for firm cashflows. In turn, this renders a concise equation for firm value: Implied Firm Value = […]

POC 6: Managerial Excellence: The Driver of Firm Value Read More »

POC 5: Multiple of EBITDA – Implied Value

COST OF CAPITAL, EBITDA

This Port of Call introduces the concept of Implied Value that results from a simple equation based upon two variables, EBITDA and the Multiple. The resulting equation is: Implied Firm Value = Firm EBITDA x Multiple This formula seems simple and straight forward, but the application of the equation may not be so intuitive. EBITDA

POC 5: Multiple of EBITDA – Implied Value Read More »