The Enterprise Multiple is measured as:
A) Total asset divided by net income.
B) Total asset divided by EBIT.
C) Enterprise value divided by EBIT.
D) Enterprise value divided by EBITDA.
E) Market value of equity divided by EBIT.

Question

Quizplus · Accepted Answer

The Enterprise Multiple is calculated as Enterprise Value divided by EBITDA, which provides a measure of a company's value relative to its earnings before interest, taxes, depreciation, and amortization.

The Enterprise Multiple Is Measured As