When You're Looking At An Industry-specific Multiple Like Ev / Scient

1.	When You're Looking At An Industry-specific Multiple Like Ev / Scientists Or Ev / Subscribers, Why Do You Use Enterprise Value Rather Than Equity Value?
Answer» You USE Enterprise Value because those scientists or subscribers are "available" to all the investors (both debt and EQUITY) in a company. The same logic doesn't apply to EVERYTHING, THOUGH - you need to think through the MULTIPLE and see which investors the particular metric is "available" to. You use Enterprise Value because those scientists or subscribers are "available" to all the investors (both debt and equity) in a company. The same logic doesn't apply to everything, though - you need to think through the multiple and see which investors the particular metric is "available" to.

When You're Looking At An Industry-specific Multiple Like Ev / Scientists Or Ev / Subscribers, Why Do You Use Enterprise Value Rather Than Equity Value?

Answer»

You USE Enterprise Value because those scientists or subscribers are "available" to all the investors (both debt and EQUITY) in a company. The same logic doesn't apply to EVERYTHING, THOUGH - you need to think through the MULTIPLE and see which investors the particular metric is "available" to.

You use Enterprise Value because those scientists or subscribers are "available" to all the investors (both debt and equity) in a company. The same logic doesn't apply to everything, though - you need to think through the multiple and see which investors the particular metric is "available" to.

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