Calculating Enterprise Value of a Private Company?
I am currently working on a case study where I have to develop comps/precedent transactions of a private company. I have been given the revenue and EBITDA for the past 5 years. How would I calculate enterprise value? Would I use the sum of discounted cash flows of the past 5 years or a projection of the next 5 years? Does NPV equal Enterprise Value?
Use a Median/Average EV/EBITDA multiple based on selected trading comps & transactions.
Multiple * EBITDA of the private company = EV
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