Enterprise Value (EV) projection involves forecasting the future total value of a company.This requires estimating future operational earnings (EBITDA for instance), and applying an appropriate future EBITDA multiple based on sector benchmarks, company's growth potential, risk profile, and market conditions.It is often used in LBO transactions to provide a rough estimate of a company's worth and to compare it with other similarly situated businesses in the industry.
Learn Enterprise Value (Indirect) with interactive examples and practice exercises in our Balance Sheet module.
This interactive learning module helps you understand Enterprise Value (Indirect) through hands-on practice and real-world examples.