标题: Value of Equity using EV/EBITDA Multiple [打印本页] 作者: Mechanic 时间: 2013-4-12 21:59 标题: Value of Equity using EV/EBITDA Multiple
Hi all,
If anyone did sample test 2011 then you should have saw this question already.
V1 Q22.
Asking to calculate Value of Equity using EV/EBITDA Multiple.
After getting EV, the answer added Cash & ST Investment and minus LT Debt only to get Value Equity.
My question is I though that to get Value of Equity from EV, we can simply subtract Value of Debt. Why do we need to added Cash & ST Inve? And why do we only minus the LT Debt?
Thanks for helping in advance.作者: SeanWest 时间: 2013-4-12 21:59
Thanks PuneCFA,
I always thought that EV value already eliminated Cash and add LT debt in. So to do it one more time for getting value of equity is confusing……
But, I guess you are right.
