Ev multiple - Study guides, Class notes & Summaries

Investment Banking Technical Interview Questions All Answers Correct Would you be calculating Enterprise Value or Equity Value when using a multiple based on free cash flow or EBITDA? ️Enterprise Value. EBITDA and free cash flow represent cash flows that are available to repay holders of a company's debt and equity, so a multiple based on one of those two metrics would describe the value of the firm to all investors. What does Balance Sheet show? What's the equation? ️It is a...

Adventis FMC Level 2 Latest Update Rated A+ what is value what people are willing to pay for (what the buyer pays) who said, "Value is what people are willing to pay for" John Naisbitt 2 primary types of valuation 1. relative valuation 2. intrinsic valuation relative valuation refers to what methods that compare the price of a company to the market value of similar assets intrinsic value refers to what the value of a company through fundamental analysis without reference to its market valu...

Where does the name Vitamin come from? - Vital amines --> Vitamines, but when it was discovered they weren't amines, the E was dropped Fat soluble vitamins - A, D, E, K Water Soluble Vitamins - C, B What B vitamin numbers are missing? Why? - B4, B8, B10, B11 Were discovered and then removed due to redudancy EV McCollum and vitamins - Theorized fat-soluble factor A that deficiency led to ophthalmia (inflammation of the eye) and water-soluble factor B resulted in beriberi Factor A --&g...

Leveraged Buyout (LBO) an attempt by employees, management, or a group of investors to purchase an organization primarily through borrowing (debt) total debt capacity Debt capacity refers to the total amount of debt a business can incur and repay according to the terms of a debt agreement this is normally however much debt the company has Purchase Price (aka Enterprise Value) Purchase price is usually determined by applying an EV / EBITDA multiple to the company's EBITDA. For example, if a c...

Enterprise Value (EV) - ANSWERmarket value of equity + market value of interest-cash EV multiple - ANSWEREV/EBITDA Market Capitalization - ANSWERshare price x number of shares outstanding Market to Book Ratio - ANSWERmarket value of equity / book value of equity or market value per share/book value per share Price - Earnings Ratio (PE) - ANSWERstock price per share/earnings per share profit margin - ANSWERNet Income/Sales EBITDA Margin - ANSWEREBITDA/Sales Return on Assets -...

FNDH 400 Exam 3 Questions and Answers (Verified Answers) Where does the name Vitamin come from? Vital amines --> Vitamines, but when it was discovered they weren't amines, the E was dropped Fat soluble vitamins A, D, E, K Water Soluble Vitamins C, B What B vitamin numbers are missing? Why? B4, B8, B10, B11 Were discovered and then removed due to redudancy EV McCollum and vitamins Theorized fat-soluble factor A that deficiency led to ophthalmia (inflammation of the eye) and water...

Which of the following statements about a P/E multiple is false? - ANSWERIt is not affected by non-cash expenses Why are acquisition multiples typically higher than comparable companies analysis? - ANSWERAcquisition multiples typically incorporate a premium Enterprise value is - ANSWERSimilar in theory to transaction value What is the formula for equity value? - ANSWERShare price x shares outstanding Which of the following pairs belongs together? - ANSWEREnterprise value and EBITDA Which of...

1 / 14 FNDH 400 Exam 3 QUESTIONS AND ANSWERS RATED A+ 2023|2024 UPDATE 1. Where does the name Vitamin come from?: Vital amines --> Vitamines, but when it was discovered they weren't amines, the E was dropped 2. Fat soluble vitamins: A, D, E, K 3. Water Soluble Vitamins: C, B 4. What B vitamin numbers are missing? Why?: B4, B8, B10, B11 Were discovered and then removed due to redundancy 5. EV McCollum and vitamins: Theorized fat-soluble factor A that deficiency led 2 / 14 to ophth...

Why do PE firms use leverage when buying companies? Amplify returns using leverage Less capital upfront => greater upside potential + greater risk Walk me through a basic LBO model 1. Make assumptions about purchase price, funding sources, interest rate on debt, and growth 2. S&U to back into Equity Contribution. PPA to calculate GW and Other Intangibles created 3. Adjust target's B/S for new debt and equity figures, allocate the purchase price, and add GW and other Intangibles s.t. A = L +...

CAPM Exam 196 Questions with Verified Answers Cost Variance formula - CORRECT ANSWER Earned Value (EV) - Actual Cost (AC) What are the 6 constraints? - CORRECT ANSWER Scope, Risk, Resources, Quality, Schedule, Budget Initiating (Process Group) - CORRECT ANSWER Processes performed to define a new PROJECT or a new PHASE of an existing project Planning (Process Group) - CORRECT ANSWER Processes performed to establish total scope of effort, define and refine objectives, and develop a cou...