Valuing a company and using multiples:
thanks
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Anyone please? thanks
Did n't get your query
Valuing a company and using multiples:
Anyone please?
1) Depends on whether you're looking at forward or historic multiples. If the multiple being used is EV / NTM EBITDA, then to find the EV as at 12/31/2015, you would look at 2016 (NTM) EBITDA. Similarly, is you're using EV / LTM BITDA, then to find the EV as at 12/31/2015, you would use 2015 (LTM) EBITDA
2) To derive the equity value as at 12/31/2015, you would deduct net debt as of that date. Basically, you deduct the net debt as of the EV date
Hope this clarifies things
Thanks- if I want to derive the current stock price based on Dec 2016 EBITDA, do I used the latest net debt or the Dec 2016 one?
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