Is the aim to get an EBIT or EBITDA multiple in order to value your target company’s equity value?
In that case, I would assume you only use this method to only value private companies. Also, assuming that the point of using comparable company analysis is to value the target’s equity value, would you then add net debt to derive EV, (i.e., EV is what you are ultimately seeking to find)?
| +137 | Piper Sandler in talks to acquire PWP | 61 | 4h |
| +125 | Interns without return offers, careers & perspective | 11 | 8h |
| +114 | UBS Appears to be Exploring Sale | 14 | 11h |
| +102 | Just One More Year | 11 | 2d |
| +82 | Are all these UBS postings bullshit? | 21 | 10h |
| +70 | Bringing Deals as a Vice President | 20 | 10h |
| +66 | Paradise Is Paradise | 5 | 16h |
| +37 | Q&A | Investment Banking Analyst, UBS | 2 years in investment banking | 11 | 1d |
| +35 | Q&A | Incoming Associate, Bulge Bracke, AMA: Career switcher (tech sales/BD → MBA → BB TMT IB), return offer | (6 years in Tech/Accounting) | 6 | 4d |
| +32 | M&A is Paradise | 1 | 2d |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
For all an all equity transaction use adjusted EBIT or NOPAT.
The goal is to get an EBIT/EBITDA multiple to find enterprise value, which allows you to calculate equity value assuming you have the necessary information.
Total Enterprise Value = Equity Value + Interest Bearing Debt + Preferred Stock - Excess Cash.
So looking at the comparable companies, you would look at their EV/EBITDA multiple and apply that to your target company?
bump
Dolore culpa commodi non omnis velit est. Id dolores corrupti dignissimos laudantium eum autem. Unde totam et totam ea quae sit.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...