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
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
Section: Chapter Questions
Problem 2P
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