EV/EBITDA: related pages

DCF valuation

The calculation of the present value of a stream of future cash flows taking into account both risk and the time expected to elapse before the cash is received.

EV/EBIT

Enterprise value divided by earnings before interest and tax.

EV/EBITA

Enterprise value divided by earnings before interest, tax and amortisation.

PE ratio

Share price divided by earnings per share.

Price/cashflow

Share price ÷ (cash flow ÷ no of shares in issue).

Price/sales

market cap ÷ sales.

Sum of parts valuation

The valuation of a company by separately valuing different parts of it so different valuation methods or ratios can be applied to disparate businesses.

Trading comps (comparables)

Valuation ratios when used to value a company by comparison with listed peers.

Valuation ratios

A measure of how expensive a share is obtained by dividing a measure of cost against a measure of value or profits.