Due to the Difficulty of Access the True Enterprise Value

question 222

True/False

Due to the difficulty of access the true enterprise value, one can use the market cap as a proxy for enterprise value to calculate the EV/EBITDA ratio.

---

Definitions:

Representativeness Bias

A cognitive bias in decision-making where the likelihood of an event is estimated based on how similar it is to the population of interest or its parent population.

Availability Bias

A cognitive bias that causes people to overestimate the probability of events associated with memorable or vivid occurrences.

Adjustment Bias

A cognitive bias influencing how individuals respond or adapt to new or changing information, often hindering accurate decision-making.

Lack-of-participation Error

Lack-of-participation error occurs when decision-making or evaluation processes are hindered due to the absence or minimal involvement of key individuals.