Book Value, Enterprise Value and Firm Value

Data Update 1 for 2023: Setting the table!

Musings on Markets

JANUARY 6, 2023

For example, I have seen it asserted that a stock that trades at less than book value is cheap or that a stock that trades at more than twenty times EBITDA is expensive. Price to Book 3. Standard deviations in equity and firm value 4. Cost of Debt 2. Standard deviation in operating income 3. Cost of Capital 3.

Risk Premium

Risk Premium Dividends Start-ups EBITDA

Data Update 5 for 2025: It's a small world, after all!

Musings on Markets

FEBRUARY 6, 2025

The second is the polar opposite on the pricing spectrum, which is the enterprise value to sales multiple, where rather than focus on just equity value, I look at operating asset value, and scale it to the broadest of operating metrics, which is revenue.

Risk Premium

Risk Premium Start-ups Enterprise Value Equity

Business Valuation Zone

Data Update 1 for 2023: Setting the table!

Data Update 5 for 2025: It's a small world, after all!

Stay Connected