Private Company Valuation
What is Private Company Valuation? Private company valuation is a set of valuation methodologies used to determine the intrinsic value of a private company. For public companies, we can easily observe the stock price and source the number of shares outstanding from filings. The market value of the public company, also called market capitalization, is the product of...
EBITDA Multiple
What is the EBITDA Multiple? The EBITDA multiple is a financial ratio that compares a company’s Enterprise Value to its annual EBITDA (which can be either a historical figure or a forecast/estimate). This multiple is used to determine the value of a company and compare it to the value of other, similar businesses. A company’s...
Beta
What is Beta in Finance? The beta (β) of an investment security (i.e., a stock) is a measurement of its volatility of returns relative to the entire market. It is used as a measure of risk and is an integral part of the Capital Asset Pricing Model (CAPM). A company with a higher beta has...
Enterprise Value vs Equity Value
Overview of Enterprise Value vs. Equity Value In this guide, we outline the difference between the enterprise value of a business and the equity value of a business. Simply put, the enterprise value is the entire value of the business, without giving consideration to its capital structure, and equity value is the total value of...
Market to Book Ratio
What is the Market to Book Ratio (Price to Book)? The Market to Book Ratio (also called the Price to Book Ratio), is a financial valuation metric used to evaluate a company’s current market value relative to its book value. The market value is the current stock price of all outstanding shares (i.e. the price...
