What is ebitda, what is dcf, diff be investment bank and private equity

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EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. DCF stands for Discounted Cash Flow. Investment banks and private equity firms differ in their focus and activities.

EBITDA is a measure of a company's profitability before accounting for interest, taxes, depreciation, and amortization expenses.
DCF is a valuation method used to estimate the value of an investment based on its expected future cash flows.
Investment banks primarily provide financial advisory services, underwriting securities, and facilitating mergers and acquisitions.
Private equity firms invest in companies by acquiring a significant ownership stake and actively managing them to generate returns.
Investment banks typically focus on capital markets and corporate finance, while private equity firms focus on direct investments in companies.
Example: EBITDA of a company is $10 million, indicating its operating profitability before considering interest, taxes, depreciation, and amortization expenses.
Example: DCF analysis is used to determine the present value of a company's future cash flows to assess its investment potential.
Example: Investment banks like Goldman Sachs and J.P. Morgan provide services like underwriting IPOs and advising on mergers and acquisitions.
Example: Private equity firms like Blackstone and KKR invest in companies, actively manage them, and aim to generate high returns for their investors.

What is ebitda, what is dcf, diff be investment bank and private equity

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