easy · Investment Banking
Company A has an EBITDA of $200 million and is valued at a 10.0× multiple. Company B has the same EBITDA but is valued at 8.0×.
Which factor most likely explains Company A's premium?
- Operating in a more cyclical or commodity-driven industry
- A larger balance of restricted cash trapped overseas
- Higher projected revenue growth and better margins
- Higher levels of debt in the capital structure
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