Equity Valuation
Enterprise Value to EBITDA
Definition
What is Enterprise Value to EBITDA?
Enterprise valueThe value of a company's operations attributable to debt and equity investors, commonly market capitalisation plus net debt and other claims. divided by EBITDAEarnings before interest, tax, depreciation, and amortisation..
Example in practice
How This Looks in Practice
A ₦120 billion enterprise value and ₦15 billion EBITDA produce an 8x multiple.
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Related Terms
Equity Valuation
Earnings Per Share
Net income attributable to ordinary shareholders divided by weighted average ordinary shares.
Equity ValuationDiluted Earnings Per Share
Earnings per share assuming potentially dilutive securities convert into ordinary shares.
Equity ValuationBasic Earnings Per Share
Earnings per share calculated using actual weighted average ordinary shares outstanding.
Cash Flow AnalysisOperating Cash Flow
Cash generated or used by a company's core operations.