EBITDA Enterprise Value Net Present Value Weighted Average Cost of Capital 
Valutico
MAY 6, 2024
These ratios, like the EBITDA multiple, compare a company’s financial performance (EBITDA, revenue, etc.) to its market value. These multiples are applied to target company’s latest financials such as revenue, earnings and book value of equity to arrive at an estimate of enterprise value or equity value.
Valutico
OCTOBER 20, 2022
This value is widely referred to as the “Net Present Value” (NPV). . d is the discount rate (which is usually the weighted average cost of capital (WACC), r in our previous example). What Happens When We Add the Terminal Value? So the Terminal Value here is three times as large!
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