g on: Enterprise Value multiples, including EV/EBITDA, EV/Revenue work regardless of the capital str

economic value of the company.
Enterprise Value vs. Equity Value Multiples
It is significant to distinguish the Enterprise Value and Equity Value for a comparable company analysis since the two values present two sides of the same coin, which happens to be the value of the company.
Enterprise value, known also as total firm value, adds equity and debt while subtracting cash and cash equivalents, equating to the total value of a company. An acquirer pays for a company that encompasses operational value and financing structure, hence the enterprise value.
The Equity Value is that value of a company which it owes to its shareholders. This is equivalent to the market capitalization of a company. The value is arrived at as the product of the current share price and outstanding shares.
When performing Comparable Company Analysis, the multiples you will apply would depend on the value you are focusing on:
Enterprise Value multiples, including EV/EBITDA, EV/Revenue work regardless of the capital structure in the value evaluation of a business.