EZTEC S.A. is a real estate development and construction company focused on the development of residential and commercial projects in the São Paulo Metropolitan Region. The company has a vertical business model, covering all stages of the real estate cycle, from land prospecting and acquisition, project development and construction, to sale and customer relations. EZTEC operates in different income segments through its two brands: the EZTEC brand, focused on medium, medium-high and high-end standards, and the EZ Inc brand, aimed at the mid-standard segment. Its product portfolio includes apartments, commercial rooms, corporate slabs, and mixed-use developments. The company's strategy is characterized by conservative financial management and a focus on projects in the city of São Paulo and the region.
Market capitalization, or "market cap", is the aggregate market value of a company represented in a dollar amount. Since it represents the “market” value of a company, it is computed based on the current market price (CMP) of its shares and the total number of outstanding shares.
Enterprise value (EV) measures a company's total value, often used as a more comprehensive alternative to equity market capitalization. EV includes in its calculation the market capitalization of a company but also short-term and long-term debt and any cash or cash equivalents on the company's balance sheet.
The enterprise value-to-revenue multiple (EV/R) is a measure of the value of a stock that compares a company's enterprise value to its revenue. EV/R is one of several fundamental indicators that investors use to determine whether a stock is priced fairly. The EV/R multiple is also often used to determine a company's valuation in the case of a potential acquisition. It's also called the enterprise value-to-sales multiple.
The enterprise value to earnings before interest, taxes, depreciation, and amortization ratio (EV/EBITDA) compares the value of a company—debt included—to the company's cash earnings less non-cash expenses. It's best to use the EV/EBITDA metric when comparing companies within the same industry or sector. Typically, when evaluating a company, an EV/EBITDA value below 10 is seen as healthy.
It follows the same logic as the EV/EBITDA indicator, but instead of EBITDA, EBIT is used, which considers non-cash D&A expenses in the company's operating result.
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