Robert W. Baird & Co. Interview Question
Web:
www.rwbaird.com
|
HQ:
Milwaukee, WI
Overview |
| |
Salaries |
| |
Reviews |
| |
Interviews |
| |
Photos |
| |
Jobs |
| |
|
21 Interview Reviews |
Back to all Robert W. Baird & Co. Interview Questions & Reviews
Interview questions and reviews posted anonymously by interview candidates
Interview Question for Equity Research Analyst at Robert W. Baird & Co.:
May 11, 2011
Advantages of using EBITDA over enterprise value in the valuation process.
Add Tags
[?]
See more for this Robert W. Baird & Co. Equity Research Analyst Interview
Helpful Question?
Yes |
No
Inappropriate?
Answers & Comments (2)
Sep 7, 2011
I think when he said "over", he was using it to signify "divided by, as in Enterprise Value/EBITDA.
The advantage is that it allows you to compare firms of different sizes and capital structures, as EV is the whole pie and EBITDA flows to both debt and equity holders.
A similar question I have gotten is: "What would you use as a numerator if your denominator were EBITDA: Enterprise Value or Equity Value?"
The advantage is that it allows you to compare firms of different sizes and capital structures, as EV is the whole pie and EBITDA flows to both debt and equity holders.
A similar question I have gotten is: "What would you use as a numerator if your denominator were EBITDA: Enterprise Value or Equity Value?"
Helpful Answer?
Yes |
No
Inappropriate?
To comment on this
question,
Sign In with Facebook or
Sign Up
You might also be interested in: Interview Questions, Equity Research Analyst Interview Questions, Robert W. Baird & Co. Interview
0 of 0 people found this helpful
by Anonymous:
EV is market cap + debt - cash and cash equivalents.
This looks like it was a quick question to see if the candidate is full of it : )