In a segment of the Technology industry, all Target companies of recent Transactions had negative EBITDA. When calculating Comparable metrics for recent Transactions, one could: 1. Add the Companies' high revenue growth rates to their negative EBITDA margins to obtain positive EBITDA multiples 2. Calculate EV/Sales metrics 3. Calculate EV/User metrics 4. Reorder the EV/EBITDA metrics and highlight to the reader that more negative EV/EBITDA multiples denote a higher price 5. Focus on % Premium paid

Essentials Of Business Analytics
1st Edition
ISBN:9781285187273
Author:Camm, Jeff.
Publisher:Camm, Jeff.
Chapter11: Monte Carlo Simulation
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Question 20 of 20
In a segment of the Technology industry, all Target companies of recent Transactions had negative EBITDA. When calculating
Comparable metrics for recent Transactions, one could:
1. Add the Companies' high revenue growth rates to their negative EBITDA margins to obtain positive EBITDA multiples
2. Calculate EV/Sales metrics
3. Calculate EV/User metrics
4. Reorder the EV/EBITDA metrics and highlight to the reader that more negative EV/EBITDA multiples denote a higher price
5. Focus on % Premium paid
O2 and 3
O 1, 2, and 4
O2, 3, and 4
O 2,3, and 5
Transcribed Image Text:Question 20 of 20 In a segment of the Technology industry, all Target companies of recent Transactions had negative EBITDA. When calculating Comparable metrics for recent Transactions, one could: 1. Add the Companies' high revenue growth rates to their negative EBITDA margins to obtain positive EBITDA multiples 2. Calculate EV/Sales metrics 3. Calculate EV/User metrics 4. Reorder the EV/EBITDA metrics and highlight to the reader that more negative EV/EBITDA multiples denote a higher price 5. Focus on % Premium paid O2 and 3 O 1, 2, and 4 O2, 3, and 4 O 2,3, and 5
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