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      07-20-2009, 07:47 PM   #1
sokdo
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what is an industry average ratio?

"You can estimate your company’s or project’s value by multiplying your company’s or project’s EBITDA (or EBIT) by the industry average ratio. However, a more careful estimation requires the computation of the free cash flow and the cost of capital."

In this statement, what is "industry average ratio" referring to? What specific ratio is it?
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