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EV/EBITDA Explained: A Key Valuation Multiple for Investors

Valutico

Assessing Acquisition Targets: Private equity firms and corporate acquirers frequently use EV/EBITDA to evaluate potential acquisition targets. Other metrics like Price-to-Book or Dividend Yield are typically more relevant for these sectors.

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

Valutico

Analysts use financial metrics and multiples such as Price to Earnings (P/E), Price to Book (P/B), Enterprise Value to Sales (EV/Sales), Enterprise Value to EBITDA (EV/EBITDA), and Price to Book (P/B) ratios derived from trading data of similar public companies or deal pricing data of similar M&A transactions.