Series 79: Step Three: Inputting Important Financial Information

Taken from our Series 79 Top-off Online Guide

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)

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