Series 79: Step Three: Inputting Important Financial Information

Step Three: Inputting Important Financial Information

Enter the relevant transaction and financial information into a spreadsheet to compute the relevant multiples. The key financial statistics, data, and ratios that will be needed are:

• • Equity value
• • Enterprise value
• • Offer price per share
• • Price/earnings ratio
• • EV/LTM EBITDA
• • EV/LTM EBIT
• • EV/LTM sales
• • Premiums paid (the percentage per share that an acquiring company offers in excess of a target company’s market price prior to an indication of potential purchase; calculated by dividing the offer price per share by the market price per share and then subtracting one from that total)