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Consequently, you can only value the equity in a bank, and by extension, the only pricing multiples you can use to price banks are equitymultiples (PE, Price to Book etc.).
The ratio is either related to the Equity Value or ratios related to the Enterprise Value. . An example of an equitymultiple: Price / Earnings. An example of an enterprise multiple: EV/Sales, EV/EBITDA, EV/EBIT and practically all non-financial multiples (e.g. EV/ARR, EV/barrel, EV/MW, EV/Click, etc).
The ratio is either related to the Equity Value or ratios related to the Enterprise Value. . An example of an equitymultiple: Price / Earnings. An example of an enterprise multiple: EV/Sales, EV/EBITDA, EV/EBIT and practically all non-financial multiples (e.g. EV/ARR, EV/barrel, EV/MW, EV/Click, etc).
For Microsoft, this would yield values of $69,916 million for operating income and an effective tax rate of 13.83% in 2021, resulting in a FCFF of $40,879 million in 2021. During the 2021 fiscal year, Microsoft bought Nuance Communications for $19.76
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