Due to the difficulty of access the true enterprise value, one can use the market cap as a proxy for enterprise value to calculate the EV/EBITDA ratio.

Name: Due to the difficulty of access the true enterprise value, one can use the market cap as a proxy for enterprise value to calculate the EV/EBITDA ratio.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The market cap is often used as a proxy for enterprise value because it is more readily available and easier to calculate.

Due to the Difficulty of Access the True Enterprise Value