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Why is EV/EBITDA so widely used and accepted? a) The multiple can be computed even for firms that are reporting net losses, since EBDITA are
Why is EV/EBITDA so widely used and accepted?
a) The multiple can be computed even for firms that are reporting net losses, since EBDITA are usually positive. |
b) | More appropriate than the PE ratio for high growth firms. |
c) | Allows for comparison across firms with different financial leverage. |
d) | Allows for comparison of firms across countries (no tax effects). |
e) | All of the above |
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