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Kendall Fisher
on Dec 09, 2024

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The Enterprise Multiple is measured as:

A) Total asset divided by net income.
B) Total asset divided by EBIT.
C) Enterprise value divided by EBIT.
D) Enterprise value divided by EBITDA.
E) Market value of equity divided by EBIT.

Enterprise Multiple

A valuation metric that compares a company's enterprise value to its earnings before interest, taxes, depreciation, and amortization (EBITDA).

Enterprise Value

A measure of a company's total value, often used as a more comprehensive alternative to equity market capitalization.

EBITDA

Earnings Before Interest, Taxes, Depreciation, and Amortization, a measure of a company's overall financial performance.

  • Understand the theory and utilization of financial ratios in analyzing businesses.
  • Comprehend the critical role of essential financial ratios in the evaluation of long-term solvency and efficiency in operations.
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Kimberly RussellDec 11, 2024
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