Archive for category Valuation
Value vs. Price: A Critical Distinction
Posted by Enrique Brito in Valuation on March 2, 2018
Price and value are fundamental building blocks in a market economy. Understanding their function and relationship dynamics provides both, the context to make informed decisions about transactions, and a strong foundation for building wealth.
Measuring Shareholder Value
Posted by Enrique Brito in M&A, Valuation, Value Enhancement on February 23, 2012
The increasing threat of global competition and the shortening of technology lifecycles require fast strategic responses on the part of most business owners. Additionally, it is crucial to develop the discipline of focusing on the right financial metrics that can have a significant impact on the ability to enhance the business value. A large number […]
What Drives Valuation Multiples?
Posted by Enrique Brito in M&A, Valuation on January 24, 2012
Valuation multiples, such as the price-to-earnings ratio and EBITDA multiples, are useful financial metrics to estimate a company’s value based on relevant peers. In the case of the price-to-earnings ratio the result is equity value, whereas EBITDA multiples determine enterprise value. It is important to note, however, that valuation multiples do not occur in a […]
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------------------- Enrique C. Brito -------------------
On Value 