This post will take a small dive into some common ways to calculate the equity value of a company, focusing on private businesses. Valuing Equity Definition In short, valuing equity is the ownership interest in a business after subtracting the financial obligations (e.g., debt)/debtholder ownership). Company Value – Debtholder Ownership = Equity Value Valuation professionals […]
When discussions of business valuations arise, the terms of EBITDA (or EBIT) and PEBITDA (or PEBIT) invariably become part of the discussion. But what do they mean? And when do you use one instead of the other? Or do they both simply arrive at the same conclusion when finding a valuation figure? If you’re interested in knowing […]
Technology Technology is an important tool that can improve a company’s performance and competitiveness. Some companies lack the resources to update technology, and therefore find it difficult to keep up with the technological changes in their markets. On the other hand, some companies manage to keep pace and are aware of changes to their market, […]