Unlike the enterprise value, the market cap is the residual value of a company from the viewpoint of solely common shareholders. Revenue Multiples: Pros and Cons In comparison to earnings multiples, such as EV/EBITDA, revenue-based multiples are less prone to discretionary accounting decisions by...
The generalized method of moments estimators were used to deal with endogeneity and other econometric problems. Findings This study finds that the accumulation of several outside directorships is negatively associated with the firm's earnings quality, as measured by the magnitude of discretionary ...
The EV/EBIT multiple, or “Enterprise Value to EBIT”, is the ratio between the total value of the firm’s operations (orenterprise value) and the company’s earnings before interest and taxes (EBIT). Enterprise Value (EV)→ The total value of a company’s operations attributable to all ...
Thus, the management of internal financial resources, particularly how to sustainably support innovative activities, remains a critical issue. While high-profitability companies typically have more discretionary funds to support innovation and R&D [10], a simple high level of profitability does not ...
Enterprise value to EBITDA is a popular multiple that is used to measure the value of a corporation. The ratio can be seen as acapital structure-neutralalternative forPrice/Earnings ratio.When valuations of different companies are compared to each other, the enterprise multiple is often considered...
E. (2006). Discretionary accruals and earnings management: An analysis of pseudo earnings targets. The Accounting Review, 81(3), 617–652. Google Scholar Becker, C., DeFond, M., Jiambalvo, J., & Subramanyam, K. (1998). The effect of audit quality on earnings management. Contemporary ...
EBITDA is a non-GAAP measure, therefore it is imperative to remain consistent in the calculation of EBITDA, as well as be aware of which specific items are being added back. Otherwise, the comps-derived valuation is susceptible to being distorted by misleading, discretionary adjustments.Related...
Four managers of long-term care institutions replied to the e-mail and voluntarily participated in March 2022. To improve the reliability of the home care attendant discretionary evaluation system and the construction of the MCDM model, this study extended the invitation to participate in the data ...