Property valuation

Mesmerizing Examples Of Melbourne Property Valuation

I’m trying to tell you in other words if there is an agenda the multiple that you’re going to pick forth the variant that you’re going to pick of PE ratio is going to fit that agenda remember that the next time somebody tries to use a p/e ratio on you now let’s look at the second multiple its its enterprise value / avatar or Ev turbid up perhaps the multiple that’s grown the most.

In usage over the last three decades now this is a multiple that’s widely used in infrastructure cable in fact generic about thirty percent of equity research is now based marketability and one of the question that’s what thinking about is why we net washout of the numerator the answer is actually surprisingly simple but we talked about the consistency row we’re getting cash out of the numerator.

Because the interest income from cash snot part of evidence and if you use that drew think of what else you should begetting out of the numerator remember we talked about cross holdings and other companies % -percent fifteen percent of other companies those are minority holdings the income from those cross holdings don’t shop an effort either so if you’re computing and EV Tabatha for a company like data motors you have to net out the market value of those cross holdings and other companies because the income from those holdings are not part of epics if you have majority holdings in another company you have a different problem your enterprise value the market value of equity comes the market notes you only sixty sixty-five percent another company so it reflects only that holding but everything else in this computation.