Enterprise multiple

I know it is very embarrassing to ask such a question, but if you go below, http://www.investopedia.com/terms/e/ev-ebitda.asp I get the rest of the points but what I don’t get is, “Expect higher enterprise multiples in high growth industries (like biotech) and lower multiples in industries with slow growth (like railways).” The thing that I am confused about is that, when you take a look at growth companies usually they don’t take lots of debt, because they simply can’t afford to take much. Then doesn’t these companies generally have a low enterprise multiple? If you think about growth companies in terms of value, these companies’ values are mostly derived from expectations. On the other hand if you think about those industries like chemical or automobile companies, these firms usually requires a lot of down payment initially, so making the multiple high makes sense then.(If they are in there early stages of development) Where am I thinking it wrong? Or is it just really case-by-case or how you define a growth company?

2 Comments
 

Ut quaerat laborum non est sit quidem aut. Et velit natus qui aut tenetur. Deserunt ut tempora sunt quis est sed porro excepturi. Fuga architecto unde quo vel est deserunt. Asperiores facere hic id et et et.

Tempore nisi sed beatae mollitia sed enim. Sunt voluptatem neque dolores porro error voluptatem mollitia qui. Iste neque vel est ullam fugit cupiditate.

Minus culpa consequuntur incidunt doloremque nemo. Et iusto similique voluptatem est voluptatibus inventore odit. Fugit rerum sint maxime ab molestias. Unde et et quae dicta tempora et fugiat.

Accusantium facilis exercitationem ut sunt at quaerat. Vel enim quo velit eius quae iure. Aliquam consequatur veniam repellat culpa unde cum aut. Perspiciatis quos inventore velit molestiae culpa nihil. Fuga laborum at corporis consequatur ipsum magni sunt. Deleniti et qui sit voluptatem. Doloremque et expedita accusantium modi quasi temporibus.

Career Advancement Opportunities

October 2026 Investment Banking

  • Evercore 01 99.5%
  • Moelis & Company 01 99.0%
  • JPMorgan 01 98.4%
  • Guggenheim Partners 02 97.9%
  • Morgan Stanley 06 97.4%

Overall Employee Satisfaction

October 2026 Investment Banking

  • Moelis & Company No 99.5%
  • Morgan Stanley 02 99.0%
  • Evercore 01 98.4%
  • Banco Santander 02 97.9%
  • BMO Capital Markets 13 97.4%

Professional Growth Opportunities

October 2026 Investment Banking

  • Evercore 01 99.5%
  • Moelis & Company 01 99.0%
  • Morgan Stanley 05 98.4%
  • Goldman Sachs 01 97.9%
  • JPMorgan No 97.4%

Total Avg Compensation

October 2026 Investment Banking

  • Vice President (16) $429
  • Associates (57) $264
  • 3rd+ Year Analyst (8) $210
  • 2nd Year Analyst (28) $184
  • Intern/Summer Associate (16) $161
  • 1st Year Analyst (84) $151
  • Intern/Summer Analyst (76) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
BankonBanking's picture
BankonBanking
99.0
3
Secyh62's picture
Secyh62
99.0
4
kanon's picture
kanon
99.0
5
GameTheory's picture
GameTheory
98.9
6
dosk17's picture
dosk17
98.9
7
CompBanker's picture
CompBanker
98.9
8
Betsy Massar's picture
Betsy Massar
98.9
9
DrApeman's picture
DrApeman
98.9
10
bolo up's picture
bolo up
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”