ratefixed,theenterprisevaluemultipleswillchangeasshown
inTable 9.7.
TABLE 9.7 After-Tax Operating Margin and Enterprise
Value Multiples
As after-tax operating margins increase, enterprise value
multiples increase. The multiple that is most closely
connected to the after-tax margin is EV/sales, and we
examine the relationship between the two inFigure 9.5.
FIGURE9.5EnterpriseValue/SalesandAfter-TaxOperating
Margin