Q900
An earning before interest, taxes, depreciation and amortization average multiple for publicly traded companies is classified as
A.
entity multiple
AnswerB.
depreciation multiple
C.
earning multiple
D.
amortization multiple
Answer: Option A
Solution
Answer: Option A
Solution:
An earning before interest, taxes, depreciation and amortization average multiple for publicly traded companies is classified as entity multiple. Enterprise multiple, also known as the EV multiple, is a ratio used to determine the value of a company. The enterprise multiple looks at a firm in the way that a potential acquirer would by considering the company's debt.