n NISM Certifications
XV NISM Series XV
Medium

A company has EBITDA of Rs. 275 crores and an EV/EBITDA ratio of 6x. The company has net debt of Rs. 520 crores. Calculate the equity value of the company.

Practice question from NISM XV Mock Test 7 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Rs. 895 crores

  2. B

    Rs. 1275 crores

  3. C

    Rs. 960 crores

  4. Rs. 1130 crores

    Correct answer

Why this is the answer

EV = EV/EBITDA × EBITDA = 6 × 275 = 1650 crores. Equity Value = EV – Net Debt = 1650 – 520 = 1130 crores.

Test yourself for real

Take a full NISM Series XV mock test.

Same duration, same weighting, same difficulty distribution as the real exam — with explanations on every question.