The fully diluted share count for each public comp is multiplied by the last closing publicly traded share price as of the Valuation Date to calculate fully diluted public market capitalization.

Next the total net debt and debt-like items are calculated for each company by summing the outstanding principal amount of financial indebtedness, book value of non-controlling interest, book value of preferred stock, and subtracting the sum of cash and short term investments.

Net debt is added to or net cash is subtracted from each comp’s fully diluted public market capitalization to calculate enterprise value.

Enterprise value is divided by consensus revenue or EBITDA (as adjusted) for a given calendar year. For growth adjusted multiples, enterprise value is divided first by the last completed calendar year financial result (revenue or EBITDA as appropriate) and then again by the consensus estimate for growth in such financial metric between the current and next calendar year.

Related articles:
​What are public company comparables ("comps")?
​Step 4 : Select Comparables
​