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EV/EBITDA Explained: A Key Valuation Multiple for Investors

Valutico

Cash & Cash Equivalents: Highly liquid assets like physical cash, bank balances, marketable securities (short-term investments easily converted to cash), a nd treasury bills. Cash and cash equivalents are deducted from EV because they reduce the effective cost of acquiring the company the cash acquired can help pay down the debt.

EBITDA 52