Question

As shown in the valuation based on the EV multiples model, the estimated intrinsic value of Twitter based on EV/EBITDA multiple vs. EV/Sales multiple are substantially different. What might explain such a difference?

Short answer question.

Answer 1

ANSWER:

• The different technique that is utilized in valuation depends on the normal of the business comparative organizations.
• Here we are utilizing EV/EBITDA and EV/Sales numerous to esteem an organization.
• Hereby utilizing the EBITDA and deals we increase with the separate various to get the Enterprise esteem (EV).
• The motivation behind why the estimations of EV can vary is EBITDA and deals of the organizations can contrast essentially thus will the normal numerous in the business which is being utilized by the examiner to ascertain the EV or venture esteem.
• The motivation behind why EV can vary likewise is on the grounds that deals of the organizations are bigger and it is the principal thing in the pay explanation while the EBITDA, gaining before intrigue, expense, devaluation, and amortization is generally little.
• The deals of huge partnerships will fluctuate fundamentally yet the variety in EBITDA isn't a lot so the normal numerous will be diverse causing the venture esteems to appear as something else