Greetings,
Can I get a company's share price by using the ev/ebit ratio? And how do I do it?
Like when I use the p/e ratio then I just take the eps*p/e number but do I need to calculate the ebitda per share and then time it by the ratio? It feels like I'm doing something wrong here.
Many thanks!
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EV/EBITDA * EBITDA = EV
EV - debt + cash = equity value
Equity value / nosh = share price
Ah of course! Thanks mate. And what about the EV/SALES ratio and EV/EBIT?
Same process, multiply EV/Sales by Revenue and EV/EBIT by EBIT to get to EV, from which you can get to equity value and share price.
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