- MemberMay 28, 2020 at 6:53 am
Would also like to add a couple of questions that crossed:
1. What are the implications of using EV/EBIT vs EV/EBITDA and when is one preferred over the other?
2. Regarding a DCF valuation, what are the key things to consider when choosing between discounting future FCFF vs FCFE (and in which scenario do you choose one over the other)?
3. When calculating the terminal value of the firm with the Exit Multiple Method, why is the EV/EBITDA multiple commonly used to multiply the final year’s EBITDA? Is it fair to also use EV/Sales or EV/EBIT and using those to multiply the final year’s Sale/EBIT respectively?
Thanks a lot for helping me out on this! Cheers!