EV/EBITDA multiple used in Comparable Company analysis may lead to a skewed valuation if peer firms...

EV/EBITDA multiple used in Comparable Company analysis may lead to a skewed valuation if peer firms are subject to different capital structure and tax regimes. true or false

Expert Solution

EV/EBITDA does not considered for the taxation so it can sometimes be providing with misleading valuations and this does account for debt capital but this can provide with the inappropriate comparison when there are different capital structure so the given statement is TRUE.

The given statement is TRUE.

jeff jeffy answered 2 years ago

explain the significance of Ev/Ebitda multiple in the valuation of the investment.

Consider the following data: Company Name Market Capitalization Enterprise Value (EV) EV/Sales EV/EBITDA EV/EBIT P/E Forward...

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For what company would a valuation metric like EV/Sales be helpful? a. A company with high...

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You are trying to value a company using the relative valuation approach. Suppose comparable companies are...

You are trying to value a company using the relative valuation approach. Suppose comparable companies are trading at an average trailing EV/EBITDA multiple of 5.7. The company you are valuing generated an EBITDA of $271 million over the last twelve months, has $386 million of debt, $51 million in cash, and 13 million shares outstanding. What is the company's implied share price? Round to one decimal place.

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Which of the followings may lead to the wrong decision if IRR is used as the...

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EV/EBITDA multiple used in Comparable Company analysis may lead to a skewed valuation if peer firms...

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explain the significance of Ev/Ebitda multiple in the valuation of the investment.

Consider the following data: Company Name Market Capitalization Enterprise Value (EV) EV/Sales EV/EBITDA EV/EBIT P/E Forward...

Estimation of a company's stock price from another company's EV/EBITDA multiple: Assume the following Comps Inc....

The methods of valuation are the following, market multiples of peer firms, book value, liquidation value,...

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There are two major approaches to corporate valuation: a) using comparable firms (via multiples, i.e. ratios)...

For what company would a valuation metric like EV/Sales be helpful? a. A company with high...

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1. Describe any four (4) suitable situations that may lead to the valuation of shares.

Which of the followings may lead to the wrong decision if IRR is used as the...