EBITDA Enterprise Value Market Capitalization 
Valutico
MAY 19, 2025
The core idea behind relative valuation is to estimate a company’s value by comparing it to similar companies based on how the market prices their financial metrics. EV/EBITDA is a widely used multiple in this relative valuation approach. What is EV/EBITDA? Breaking down the multiple What is EBITDA?
Musings on Markets
OCTOBER 12, 2023
On the alternative energy front, as money has flowed into these companies, there has been a surge in enterprise value (equity and net debt) and market capitalization (equity value); I report both because impact investing can also take the form of green bonds, or debt, at these companies.
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Musings on Markets
MAY 20, 2022
Historical Data: 1930-2019 To see how this framework works in practice, let's start by looking at the performance of US stocks, across the decades, and look at the returns on stocks, broadly categorized based on market capitalization and price to book ratios.
RNC
JULY 2, 2024
By analyzing factors like the price-to-earnings (P/E) ratio, price-to-book (P/B) ratio, and enterprise value-to-EBITDA (EV/EBITDA) ratio, companies can determine if their shares are undervalued or overvalued compared to peers. It is suitable for firms with substantial tangible assets like real estate or machinery.
Valutico
AUGUST 23, 2023
In the DCF method, the value of the business is calculated by estimating the future cash flows of the business, with a discount rate applied. In the CCA method, valuation multiples such as P/E ratio, EV/Revenue ratio, and EV/EBITDA ratio, provide benchmarks for estimating value by comparing financial metrics to publicly traded companies.
Valutico
AUGUST 10, 2023
In the DCF method, the value of the business is calculated by estimating the future cash flows of the business, with a discount rate applied. In the CCA method, valuation multiples such as P/E ratio, EV/Revenue ratio, and EV/EBITDA ratio, provide benchmarks for estimating value by comparing financial metrics to publicly traded companies.
Valutico
SEPTEMBER 22, 2023
Market-based approaches gauge a company’s value by analyzing comparable market transactions and valuations. Asset-based approaches determine a company’s value by evaluating its underlying tangible and intangible assets. It represents the total market value of the company’s equity.
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