Understanding Company Value
Understanding Company Value
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 »
As noted in our previous exploration cash flow is the touch stone of valuation methodologies, and business in general. EBITDA is widely used in practice as a convenient “proxy” for cash, and no journey into valuation would be complete without a deep dive into this concept. EBITDA will be explored regarding what it represents and
POC 4: EBITDA: Earnings Before Interest, Taxes, Depreciation & Amortization Read More »