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Understanding EV to Capital Employed Ratio by Ahamed Azar is a document available to read on EtoBox.
What is Understanding EV to Capital Employed Ratio about?
The document explains the Enterprise Value (EV) to Capital Employed ratio, illustrating how to calculate returns based on the ratio. It provides a step-by-step example showing that a higher EV relative to Capital Employed reduces the return on investment. The conclusion emphasizes that to achieve a desired return, one should not pay more than 2.25 times the Capital Employed.
- Author
- Ahamed Azar
- Language
- EN