Remove Banking Remove Discounted Cash Flow Remove EBITDA Remove Price to Earnings
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Methods of Business Valuation by Their Profitability

Equilest

This multiple is similar, by analogy, to the PER (Price to Earnings Ratio of listed companies). For an explanation of the meaning of these "intermediate management balances", see the article "income statement"; As a first approach, the ENE and EBIT couples and EBITDA and EBITDA can be taken as roughly equivalent.

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M&A Valuation Methods: Your Essential Guide with 7 Key Methods

Valutico

Income-based methods such as Discounted Cash Flow analysis focus on future cash flows to determine value. These ratios, like the EBITDA multiple, compare a company’s financial performance (EBITDA, revenue, etc.) to its market value.

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M&A Terms Every Business Owner Should Know

Class VI Partner

The higher the degree of risk or unpredictability of a set of future cash flows, the higher the discount rate. Discounted Cash Flow Value Discounted Cash Flow Value refers to the calculation of a company’s Enterprise Value on the basis of its ability to generate free cash flow over time.