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EV/EBITDA Explained: A Key Valuation Multiple for Investors

Valutico

It is generally not suitable for valuing banks and financial institutions and early stage companies. Interest Expense: This represents the cost of borrowing money, such as the interest accrued on bank loans or equipment financing. Taxes: A fraction of a company’s earnings is paid as income taxes.

EBITDA 52
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Risk Capital and Markets: A Temporary Retreat or Long Term Pull Back?

Musings on Markets

The first is the return that can be earned on guaranteed investments , i.e., US treasury bills and bonds, for instance, if you are a investor in US dollar, since it is a measure of what someone who takes no or very low risk can expect to earn.