SHAREHOLDER EQUITY — VALUING YOUR COMPANY

So now you know the importance of EBITDA and that it is a component of enterprise value. Since enterprise value is the value of your company to an investor, what exactly does it mean to you?

Enterprise value is a measure of how a buyer determines a value for a printing company in its entirety. It is not just what the buyer is paying for the shareholder’s equity, but also includes all of the seller’s interest-bearing debt. Enterprise value is not the cash with which the seller ends up.