what is an industry average ratio?

sokdo · 07-20-2009, 08:47 PM

"You can estimate your company’s or project’s value by multiplying your company’s or project’s EBITDA (or EBIT) by the industry average ratio. However, a more careful estimation requires the computation of the free cash flow and the cost of capital."

In this statement, what is "industry average ratio" referring to? What specific ratio is it?

Oregano123 · 07-20-2009, 08:58 PM

the total enterprise value

Oregano123 · 07-20-2009, 08:59 PM

http://en.wikipedia.org/wiki/Enterprise_value
http://www.investopedia.com/terms/e/ev-ebitda.asp

sokdo · 07-21-2009, 12:00 AM

thanks alot that really helped!

07-20-2009, 08:47 PM	#1
sokdo Lieutenant 52 Rep 582 Posts Drives: 335i E92 Join Date: Jul 2009 Location: Fullerton, CA iTrader: (0)	what is an industry average ratio? "You can estimate your company’s or project’s value by multiplying your company’s or project’s EBITDA (or EBIT) by the industry average ratio. However, a more careful estimation requires the computation of the free cash flow and the cost of capital." In this statement, what is "industry average ratio" referring to? What specific ratio is it?
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07-20-2009, 08:58 PM	#2
Oregano123 Banned.....j/k 28 Rep 174 Posts Drives: '09 535xi, '11 Panamera Join Date: Jun 2005 Location: South Dakota iTrader: (0)	the total enterprise value __________________
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07-20-2009, 08:59 PM	#3
Oregano123 Banned.....j/k 28 Rep 174 Posts Drives: '09 535xi, '11 Panamera Join Date: Jun 2005 Location: South Dakota iTrader: (0)	http://en.wikipedia.org/wiki/Enterprise_value http://www.investopedia.com/terms/e/ev-ebitda.asp __________________
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07-21-2009, 12:00 AM	#4
sokdo Lieutenant 52 Rep 582 Posts Drives: 335i E92 Join Date: Jul 2009 Location: Fullerton, CA iTrader: (0)	thanks alot that really helped!
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