EBIT Enterprise Value Equity Multiples 
Valutico
DECEMBER 15, 2022
Example: Here’s an example of a particular metric you might use: In order to determine the Enterprise Value of the business, you find the EBITDA from the business you’re valuing, and then multiply this by the EBITDA multiple observed from the other comparable companies. This EBITDA multiple is the EV/EBITDA ratio.
Valutico
DECEMBER 15, 2022
Example: Here’s an example of a particular metric you might use: In order to determine the Enterprise Value of the business, you find the EBITDA from the business you’re valuing, and then multiply this by the EBITDA multiple observed from the other comparable companies. This EBITDA multiple is the EV/EBITDA ratio.
Musings on Markets
OCTOBER 25, 2022
Thus, we start with operating income or earnings before interest and taxes (EBIT) replacing net income. (I With enterprise value multiples, you can scale enterprise value to FCFF, instead of using EBITDA or revenues as your scalar.
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