Series 79: EV Multiple

Taken from our FINRA Investment Banking Exam

Definition of the term EV Multiple...

a valuation multiple that considers the entire value of the company, not just its equity. EV multiples allow meaningful comparisons between companies with different capital structures. The most frequently used enterprise value multiples are EV/EBITDA, EV/EBIT, and EV/sales. Also called a firm multiple.

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