In the relative valuation method, the multiple of P/B ratio reflects the multiple of a company's equity value relative to its net assets. The calculation formula of P/B multiple is: P/B multiple = equity value ÷ net assets.
The multiple of P/E ratio reflects the multiple of a company's equity value relative to its net profit. The calculation formula of P/E ratio multiple is: P/E ratio multiple = equity value ÷ net profit.
The multiple of the marketing ratio reflects the multiple of the company's equity value relative to its sales revenue. The calculation formula of marketing ratio multiple is marketing ratio multiple = equity value ÷ sales revenue. The calculation formula of profit before interest, tax, depreciation and amortization is EBITDA)= earnings before interest and tax (EBIT)+ enterprise value of depreciation and amortization/the calculation formula of enterprise value of profit before interest, tax, depreciation and amortization multiple method is ev = ebitda× (ev/ebitda multiple).